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.