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With the closure of the response period to the ESMA consultation paper on products that would be eligible for mandatory clearing* the industry is likely to face a major step forward in the implementation of the European Market Infrastructure Regulation (EMIR). It is the first time that there are official positions as to which products will be subject to clearing among the numerous OTC derivatives in existence.
The ABBL responded to this consultation proposing that only the most actively traded instruments, if fully standardised, may be eligible. Foreign Exchange shall be exempted, just as in the US and as currently proposed in the CPSS-IOSCO margin for non-centrally cleared OTC derivatives. An additional feature that the ABBL feels strongly about is that clearing...
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