AFM and DNB support ESMA statement on PSA clearing and trading obligation timing gap
On 8 August 2018, the European Securities and Markets Authority (ESMA) issued a statement on the clearing and trading obligation for pension scheme arrangements (PSAs) as described in article 2 (10) of EMIR. The statement is an update of the previous statement of 3 July 2018 which only concerned the clearing obligation.
In its statement, ESMA reiterates that it is aware of the difficulties that PSAs will face during the timing gap between the expiry of the current EMIR clearing exemption on 16 August 2018 and the day on which EMIR Refit comes into force.
ESMA also sets out its expectations that competent authorities would not prioritize supervisory actions in respect of the clearing and trading obligation towards entities that are expected to be exempted again in a relatively short period of time and to generally apply their risk-based supervisory powers in their day-to-day enforcement of applicable legislation in a proportionate manner.
DNB and the AFM support ESMAs statement. Accordingly, DNB and the AFM will not require PSAs and their counterparties to start putting processes in place to clear derivatives or to trade them on a trading venue for which they are currently exempt from clearing under EMIR during such timing gap.
This approach is subject to any further statements that may be issued by ESMA, DNB or the AFM.Contact for this article
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