Derivative regulatory changes in 2014

Derivative regulatory changes in 2014

What have been the key regulatory changes for derivatives lawyers in 2014? Simon Puleston-Jones, chief executive office of the Futures and Options Association (FIA) Europe highlights the key changes of 2014 and what to look out for in 2015.

What have been the main regulatory changes affecting derivatives lawyers in the UK this year?

The overarching challenge of 2014 (which will continue in 2015 and beyond) has been the need for a huge number of over-the-counter (OTC) transactional lawyers to become cleared derivative and regulatory experts due to the changes in the European Market Infrastructure Regulation (EU) 648/2012 (EMIR) and the Markets in Financial Instruments Regulation (EU) 648/2012 (MiFIR). The world in which they have worked up to now has irrevocably changed.

More specifically:

EMIR

Delegated reporting agreements and reporting queries more generally

  • familiarisation with/negotiation of swaps clearing documentation
  • working to find solutions to indirect clearing under EMIR and MiFIR
  • working with internal and external stakeholders to lobby on the frontloading and mandatory clearing requirements
  • identifying, understanding and explaining the impact of extra-territorial legislation on their business
MiFID II/MIFIR

Responding to the European Securities and Markets Authority (ESMA) discussion paper and consultation paper over a ten-week period in the summer (845 pages, 860 questions) and the 1600 pages just published by ESMA on 19 December 2014. For lawyers working at commodity trading and energy companies that are not regulated under MiFID I, understanding and explaining the impact on their firm if it becomes subject to regulation under MiFID II.

Capital Requirements Directive IV (CRD IV)

Liaising with internal and external stakeholders to help the business better understand the impact of the regulatory capital requirements and leverage ratio constraints set out in CRD IV 2013/36/EU, and to understand and

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About the author:

Meet Emma:

1.Banking and finance lawyer with experience in derivatives, debt capital markets, securitisation and structured finance in London and Paris

2.Likes ballet, playing the harp and holidays

3.Thinks the law is always changing!

Emma trained and qualified at Allen & Overy LLP and worked in their derivatives and structured finance teams in London and Paris.  She then joined the foreign exchange prime brokerage legal team at Deutsche Bank before spending 4 ½ years with Crédit Agricole CIB advising the fixed income and derivatives desk.