Goldman: how Emir should introduce indirect clearing model

Author: Gemma Varriale | Published: 3 Apr 2012

Key industry figures have said that the European Market Infrastructure Regulation (Emir) must make indirect clearing a genuine and practicable option for certain market participants.

According to Goldman Sachs, the way to accomplish this is for the draft regulatory standards (RTS) to avoid setting out a specific single model of indirect clearing.

"The principles of agency and insolvency law are not consistent across all European jurisdictions and as a result a single model might not work in each member state," said the investment bank in a response to the paper.

Emir introduces provisions to improve transparency and reduce the risks associated with the over the counter (OTC) derivatives market and establishes common rules for central counterparties (CCPs) and trade repositories.

To facilitate the use of...