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.