On May 21, the European Commission (EC) issued a consultation paper (CP) as part of its review of the European Market Infrastructure Regulation (EMIR). Article 85(1) of EMIR requires the EC to prepare a report by August 17 on the implementation of EMIR, with a particular focus on: (1) access to central bank liquidity for central counterparties (CCPs); (2) the impact of EMIR on the use of over-the-counter (OTC) derivatives by non-financial firms and the systemic importance of such firms’ transactions; (3) the effectiveness of “colleges” responsible for the coordinated supervision of CCPs with business activities in multiple EU member states; (4) the efficiency of CCP margining requirements to limit procyclicality; and (5) the evolution of CCP policies on collateral and margin.

The CP invites comment on all aspects of the five issues identified in Article 85(1) of EMIR. The EC has also included a series of questions on other aspects of EMIR implementation, including in particular impediments or unintended consequences relating to access to clearing (including indirect clearing arrangements), reporting to trade repositories, bilateral exchanges of collateral for uncleared OTC derivatives and cross-border transactions in OTC derivatives. The EC has also requested comment on significant impediments or unintended consequences relating to any other aspect of EMIR implementation.

The consultation period closes on August 13. The CP can be found here.