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EMIR, Mifid

CCP open access for ETDs to go ahead

ESMA this week published a decision that open access to CCPs (Central Clearing Counterparties) for the clearing of ETDs (Exchange Traded Derivatives) should go ahead as required by MiFIR/MiFID II. ESMA’s announcement can be found here.

MiFIR requires that any CCP be permitted to clear trades on venues, thus promoting competition, especially since mandatory clearing under EMIR is starting. There had been a request to phase in the open access requirement for ETDs, by 30 months, because of a fear of “undue risks” in a non phased start, which ESMA have assessed do not arise. See here for an explanation of the legal background on the Norton Rose Fulbright web site.

This article on the Reuters web site examines some aspects of this decision, and the different types of party involved. The energy and commodities sector is also likely to eventually be affected by the open access requirements.

About avivhandler

Aviv is the Managing Director of ETR Advisory, a niche consultancy focused on the regulation of the commodity, energy and financial markets. He has more than 23 years of experience in the financial, energy and commodity markets, covering regulatory compliance, credit, risk and financial technology. Prior to founding ETR, he was Partner at SunGard Global Services, where he built a Centre of Excellence in European Energy and Commodity Regulation. Before that, he founded Coherence, a consulting firm specializing in credit risk in commodity and energy trading as well as software product management. The credit practice ultimately became part of Sirius Solutions, where he was the Managing Director of Europe. He has also held management roles at KWI and Iris Financial, among other organizations. Mr. Handler holds a degree in computer science from Imperial College, University of London.


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