On November 10, ISDA and seven other trade associations wrote to the European Supervisory Authorities (ESAs) to ask them to provide guidance to national competent authorities (NCAs) to exercise their supervisory powers in relation to the European Market Infrastructure Regulation (EMIR) margin requirements for equity options in a proportionate and risk-based manner between January 4, 2024 and the go-live date for EMIR III. Alternatively, the ESAs should extend the temporary exemption in the EMIR bilateral margin regulatory technical standards beyond the current January 4, 2024 expiry date or until EMIR III takes effect.
It is expected that the European Parliament and Council of the EU will support a permanent exemption for equity options from EMIR bilateral margin requirements.
The EMIR bilateral margin requirements have included a time-limited exemption for equity options since they first entered into force in 2016. This exemption has been extended several times, accompanied by guidance from the ESAs that NCAs should exercise their supervisory powers in a proportionate and risk-based way to bridge gaps between the expiry of previous exemptions and the entry into force of amended bilateral margin rules extending the derogation.
Documents (1) for Joint Trade Association Letter on EMIR Bilateral Margin Requirements for Equity Options
Latest
Refreshing the FX Definitions
A lot has changed in the FX derivatives market since 1998, when the last set of standard definitions for FX transactions were published. Trading volumes have grown substantially, and average daily turnover has risen by six times. Market practices have...
ISDA & EMTA Publish New FX Definitions
ISDA and EMTA, Inc., the trade association for emerging markets, have jointly published a revised set of standard definitions for foreign exchange (FX) derivatives transactions, which update key market practices and consolidate various FX and FX-related product templates and provisions...
ISDA Position Paper on SFDR Review
On February 27, ISDA and the Association for Financial Markets in Europe (AFME) published a position paper on the European Commission’s (EC) proposed revisions to the Sustainable Finance Disclosure Regulation (SFDR 2.0). The paper welcomes the EC’s proposal as a...
ISDA Response to HKMA SFC Consultation on Clearing Rules
On February 27, ISDA responded to a joint consultation by the Hong Kong Monetary Authority (HKMA) and the Securities Futures Commission (SFC) on proposed amendments to schedule 2 of the clearing rules for over-the-counter (OTC) derivatives. The proposed amendments introduce...