EMIR: ESMA recommends June 2023 start date for clearing obligation for pension funds
ESMA has recently written to the EU Commission providing its views and recommendations on the clearing obligation for pension scheme arrangements (PSA).
Following its assessment, ESMA has concluded that PSAs are operationally ready to clear their over the counter (OTC) derivatives but they should be given sufficient time before a clearing obligation takes effect. ESMA has recommended that the clearing obligation should start to apply to PSAs from 19 June 2023.
ESMA believes that the proposed start of the clearing obligation may also feed into the EU’s broader clearing strategy, which is intended to build clearing capacity within the EU and reduce reliance on UK central counterparties (CCPs).
Next step: The EU Commission will decide on whether to grant the suggested extension of the exemption until June 2023.