The European Parliament has approved draft legislation of the
European Market Infrastructure Regulation (Emir) that will force trading
of some over the counter (OTC) derivatives contracts through central
counterparties (CCPs), however lawyers have warned regulators not to
rush the rulemaking process.
Although commissioner Michael Barnier has said that the EU has now
also fulfilled its G20 commitments in this field, much work remains to
be done on the details that will determine the legislation's operation.
The European Securities and Markets Authority's (Esma's) technical
standards will provide this detail. European regulators are now racing
to meet the G20 deadline and produce these rules by the end of
"There is pressure on both the European supervisory authorities and
on market participants to do a lot of work quite quickly," said Julian
Velarde, head of derivatives, London, CIB legal, at BNP Paribas. "A lot
of what the industry will care about is...