On 20 January 2021, the European Commission published a draft Implementing Decision setting up an equivalence in the field of collateral exchange for OTC Derivatives transactions non centrally cleared by a CCP.
Access to the Implementing Decision
Stakeholders were invited to provide feedback limited in size to 4000 characters by 17 January 2021.
ALFI provided feeback in time, putting emphasis on an unlevelled
playing field between the EU and the US. Indeed, the provisions at stake
imply the implementation of burdensome and unjustified procedures for
the investment fund industry (eligible only to the last and less risky
phases of UMR), and in particular for the small sized funds. The
corresponding provisions increase the cost of collateral in the EU and
thus preclude an effective equivalence with the US regime.
Because the RTS corresponding to the Article 11(15)(aa) of EMIR Refit
have finally not been issued, the financial industry does not benefit
from a fair and complete information to assess the actual extent of the
equivalence project. The equivalence is dependent on the actual
endorsement of the different RTS. Consequently, in ALFI’s view, the
equivalence project should be postponed to at least 1 month after the
official publication of the last RTS.
ALFI
© ALFI - Association of the Luxembourg Fund Industry
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