Swaps rules deadline not viable, says EC

The European Commission (EC) has suggested that deadlines for regulations on global swaps proposed by the European Supervisory Authorities (ESAs) are not viable. 

A letter from EC director general Olivier Guersent to the chairs of the European Securities and Markets Authority (ESMA), the European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA) confirmed the EC’s opposition to the deadlines and recommended an alternative deadline. 

“The Commission believes that the implementation date proposed by the ESAs, which are in line with international principles, are not viable given the timeframe available,” said the letter. 

“The Commission is therefore proposing an adjusted timeline for implementation of the requirements.” 

The letter also states that the current deadlines would not grant the EC sufficient time to complete its adoption procedure and for the European Parliament to conduct the necessary scrutiny. 

The initial draft regulatory technical standard on risk mitigation techniques for OTC derivatives contracts not cleared by a central counterparty was submitted to the EC in March. 

Earlier this month, ESMA urged then EC Commissioner Jonathan Hill to ensure that the delay on implementing collateral rules for uncleared derivatives is not prolonged. 

ESMA has already proposed a longer phase-in period for the central clearing of OTC derivatives for those less active in trading the products.