With the SEC having recently proposed regulations implementing the cross-border derivatives provisions of the Dodd-Frank Act, in a letter to ESMA Chair Steven Maijoor, Jonathan FaulI, Director General of the European Commission Internal Market, directed ESMA to propose standards implementing the cross-border provisions of Regulation (EU) No 648/2012 on OTC derivatives, central counterparties and trade repositories (EMIR) by September 25, 2013. In June 2012, ESMA decided to postpone the development of these standards, which deal with the application of EMIR to transactions between U.S. and other non-EU entities with a direct, substantial and foreseeable effect within the Union. Given the connection between these standards and the ongoing discussions with the SEC, CFTC and other international regulators on the coordination of the implementation of OTC derivative markets reforms, noted the Director General, it was indeed crucial to have more visibility about these developments before defining these standards, which will be part of the EU response to these international developments.
In accordance with E.U. legislation, the Commission may set a new time limit for the delivery of these standards. In the view of the senior official, the progress made in the international discussion over the past months in the framework of the OTC Derivatives Regulators Group permit setting a new deadline for the development of these standards. After consultation with ESMA staff, the end of September 2013 seems a realistic deadline.