On behalf of the EACT, the ACT’s Steve Baseby sat on a panel to discuss the effect of EMIR implementation on non financial corporates (NFCs). Panellists were asked to focus on the costs of implementation and whether there has been any impact on NFCs appetite to hedge risk. These questions were addressed and we also raised concern around inconsistency between EU and the already active USA regulation, and potentially other regional implementations and its effect on competitiveness of EU based business, and questioned whether NFCs should be involved in trade reporting at all because their level of activity argued against them being a systemic risk in the banking market EMIR is intended to manage.
The EACT’s summary of the hearing is attached below.
The EU has issued a consultation paper on EMIR implementation, which can be read here
The ACT is preparing a draft responses to this paper with a final due date of 13 August for submission.
The Policy & Technical team would appreciate any comments on the outcome of the hearing and on the consultation paper. Please forward these in the first instance to technical@treasurers.org.
