On 8 May 2014, ESMA sent a letter to the European Commission in relation to its intention to ease certain front-loading requirements under EMIR. Front-loading refers to clearing obligations under EMIR, which require counterparties to centrally clear certain derivative trades entered into after a central counterparty has been authorised under EMIR to clear such transactions but before the EMIR clearing obligation comes into force. ESMA has informed the Commission that it plans to establish the front-loading requirements in a way that will minimise uncertainty. ESMA believes that the front-loading procedure can create uncertainties for derivatives end-users in situations where precise terms of a clearing obligation have not yet been defined, which can cause an adverse impact on risk hedging and financial stability.
ESMA's letter to the Commission is available at:
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