Ignore Clearing Rules For Small Firms, EU Tells Regulators

Law360, London (January 31, 2019, 2:35 PM GMT) -- Europe’s top securities regulator told national regulators on Thursday they can turn a blind eye to smaller counterparties that are not clearing derivatives transactions if the companies will fall below a threshold when updated trading rules take effect later this the year.

Financial services companies that hold less than €8 billion ($9.2 billion) in non-cleared derivatives each month will be obliged to start using central counterparties, or CCPs, to clear their over-the-counter trades from June under the bloc’s European Market Infrastructure Regulation.

But the European Securities and Markets Authority said the EU's national regulators should not “prioritize supervisory actions" against counterparties...

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