ESMA Sets Conditions for Derivatives Clearing Exemption Under EMIR 3
Photo: TokenPost
The European Securities and Markets Authority (ESMA) on Oct. 20 set out proposed conditions for exempting certain over-the-counter derivatives transactions from mandatory clearing under EMIR 3, with safeguards intended to prevent misuse. The exemption concerns post-trade risk reduction services, which help market participants manage risk in their derivatives portfolios. Providers and users would have to meet the conditions for transactions to qualify. ESMA’s final report contains draft regulatory technical standards covering the information providers give participants, how risk-reduction exercises are conducted, provider controls and recordkeeping. The standards also describe how use of the exemption would be monitored.
Source: TokenPost
