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EMIR

Delay for results of EMIR review

Last November, the European Commission issued a report outlining possible changes to EMIR following the EMIR review a year earlier (see here). During the previous summer, ESMA issued their response (see here) which included a recommendation to remove the “hedge exemption” which is used as part of the EMIR clearing threshold calculation, accompanied by an increase in the threshold level. If enacted, such a change  would be likely move more energy and commodity traders to “NFC+” status under EMIR, which brings into scope mandatory clearing, the uncleared margin rules, more onerous reporting requirements and also tougher  risk management rules.

According to this article by Anna Carrier of Norton Rose Fulbright, the Commission have delayed publication of the resulting legislative proposal from March to June. The article indicates that the relevant parties are split over whether and how to modify EMIR in relation to the clearing threshold, the coverage of NFCs in general and other matters.

About avivhandler

Aviv is the Managing Director of ETR Advisory, a niche consultancy focused on energy and commodity regulation. He has more than 20 years of experience in energy and commodity trading, credit, risk and financial technology. He has delivered a series of trading, credit and risk solutions to a wide variety of oil majors, power and gas companies and investment banks. Prior to founding ETR, he was Partner at SunGard Global Services, where he built a Centre of Excellence in European Energy 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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