On 30 November, FIA jointly with ISDA, AIMA, AFME, ICI Global, EBF and EFAMA submitted a letter recommending that the European Commission issues equivalence determinations under EMIR Art 2a before the end of the transition period in order to ensure that EU firms can benefit from treatment similar to that available to firms established in the UK. This would avoid unintended consequences that would have an impact on their risk management or investment activities.
The letter points out that equivalence decisions are still outstanding in critical areas of financial services, including in relation to UK regulated markets under EMIR Art 2a and explains that a failure to grant equivalence for the purpose of EMIR Art 2a will result in negative impacts for EU market participants and EU derivatives markets, create an unlevel playing field and operational challenges for EU banks and investment firms and will ultimately impact corporate end-users and the real economy in the EU.
