FIA Europe assesses cumulative impact of regulatory reform
On June 8 FIA Europe published a review of the cumulative effect of European derivatives reform, setting out the core issues and offering potential solutions to encourage further debate. The aim of the white paper is to assist key legislative and regulatory bodies in addressing inconsistencies and unintended consequences brought about by a range of current and proposed European derivatives regulations.
The recommendations include:
- Amending the leverage ratio under Basel III to recognize the exposure-reducing effect of segregated margin;
- Allowing indirect clearing clients to opt out of the ‘leapfrog’ payment regime;
- Exempting exchange-traded derivatives from the preexecution and straight-through-processing checks under MiFIR;
- Greater harmonization of cross-border regulation;
- Removing the EMIR reporting obligation with respect to exchange-traded derivatives;
- Changing the dual-sided EMIR reporting regime to a single-sided regime; and
- Consolidating all of the existing derivatives reporting obligations into a single EU regulation.
