The delay has been welcomed so that firms can prepare but this presents additional challenges, experts have warned
The delay to new rules that require banks
to set aside collateral against a possible swap default is a
positive step but the postponement could raise operational
issues, experts have said.
The European Market Infrastructure
Regulation (Emir) collateral requirements were set to take
effect in September for non-centrally cleared transactions but
the European Commission said last week that it is still
reviewing the draft standards and that they will be now
submitted after this deadline.
"A delayed implementation is certainly
welcome," Deepak Sitlani, derivatives partner at law firm
Linklaters, told FOW. "The industry has been working hard to
implement based on draft rules that included mistakes and
ambiguities. Hopefully now there will be an opportunity to fix
those and for the market to build systems and develop
documentation based on a finalised set of rules rather than a
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