The European Securities and Markets Authority (ESMA) has published its latest consultation paper on the revision of its Regulatory Technical Standards (RTS) in relation to EMIR.
Each month, ESMA releases a Q&A designed to help inform market participants of European Market Infrastructure Regulation (EMIR). More specifically, this includes implementing technical standards (ITS) that help streamline the overall transaction reporting process.
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Since the passage of the RTS and ITS last year, ESMA has helped iron out several shortcomings and loopholes with the hopes of ensuring a plausible and effective process. Given the dynamic nature and overall scope of the EMIR regulation, these efforts have been met with numerous critiques, given the overall difficulty in fostering such standards.
It does demonstrate the fact that ESMA has largely abstained from the retail sector, instead focusing on several large interbank markets.
Indeed, according to Mark Kelly, Director of Abide Financial Limited, in an exclusive statement to Forex Magnates, “It is a cause for concern that ESMA’s guidance has not given equal coverage to all financial services sectors, focusing on the large interbank derivative markets and having little to say on the retail derivatives sector. Perhaps this may change over time, given that such a high percentage of the transactions now being reported are the small value one-sided client reports that the retail firms are obliged to submit.”