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The European Securities and Markets Authority will have until the end of September to finalise the technical standards for the so-called European Market Infrastructure Regulation, according to sources. ESMA had originally been given until 30 June to finalise its standards. The extension comes less than a week after the European Parliament and European Council formally agreed to the text of the EMIR legislation.
The legislation will mirror parts of the Dodd-Frank act in the US. Both pieces of reform reflect efforts by US and European regulators to meet commitments made by leaders of the G20 countries at a Pittsburgh conference in 2009, to reduce risk in the financial derivatives markets after the financial crisis. The leaders agreed to implement reforms by the end of 2012.
Pressing issues include determining which types of derivatives will be eligible for clearing, and setting organisational standards for clearing houses and data repositories. It must also establish a threshold for activity levels conducted by non-financial firms at which they come under the umbrella of the legislation.
Given the amount of work on ESMA's plate - and its relatively small workforce - there have been growing calls for the agency to receive longer deadlines for its work, to allow it to consult properly with industry participants.
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