The European Commission published the final Regulatory Technical Standards ("RTS") on October 4, 2016, which moves the technical standards for the EU rules on margin for non-cleared OTC derivatives another step closer to the effective date.
The European Supervisory Authorities intended to reject several provisions of the European Commission's RTS draft, in particular, the relaxation of concentration limits on initial margins for pension funds. However, in its final RTS, the Commission reiterated the view that it is more appropriate to replace the concentration limits for pension funds with specific management risk tools to monitor potential risks (to be reviewed after three years of implementation).
The objection period will expire at the end of November; if no objections are raised, that would put the RTS into the EU Official Journal by mid-December which should permit the rules to become effective by the end of January 2017.
Commentary / Assia Damianova
It is not clear whether further delays might occur. If further delays do occur, the regulatory mismatch for entities that have to comply with the U.S. rules (in force) and those affected by the EU rules (not yet final) will continue.
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