EMIR vote cancellation means MEPs' message is getting through

07-Feb-2013 @ 13:0

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Anthea McIntyre Anthea McIntyre

Anthea McIntyre Anthea McIntyre

A decision today by the European Parliament to withdraw a controversial motion on EMIR derivatives regulation - in advance of an impending vote in Strasbourg - is a sign that MEPs' concerns have hit home, a senior negotiator on the legislation has said.

Kay Swinburne MEP, Conservative spokesman on economic and monetary affairs, was successful earlier this week in raising two key issues relating to regulating trading in so-called over-the-counter (OTC) derivatives. She persuasively argued that the clauses over-rode the clear wish of MEPs that smaller non financial-services businesses, which may rely on OTC derivatives to hedge against currency and interest-rate fluctuations, should not be disproportionately caught up in the regulation.
Today she said: "The Commission has acknowledged that the parliament's concerns are valid. When providing guidance on how EMIR will be implemented for non-financial end-users of derivatives products there will be a long phase-in, and flexibility for supervisors in how the rules are applied.

"My major concern that corporate users of derivatives would not be able to participate without expensive systems has been recognised by the commission which will give legal certainty on this issue in the coming days, and make clear that manual confirmation process will be acceptable.

"I welcome the very clear statement from the commission that they will work more closely with the Parliament concerning such detailed rule-making in the future and hope that their promises will be backed up by concrete action to ensure a better rule-making process for financial services legislation going forward."

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