ESMA provides market participants with guidance on the clearing obligation for trading with 3rd country Pension Schemes

The European Securities and Markets Authority (ESMA), as the EU’s financial markets regulator and supervisor, today issued a public statement on deprioritising supervisory actions linked to the clearing obligation for third-country pension scheme arrangements (TC PSA), pending the finalisation of the review of EMIR.

During this period and in view of the challenges that market participants would face, ESMA expects National Competent Authorities (NCAs) not to prioritise supervisory actions in relation to the clearing obligation for derivative transactions conducted with TC PSAs exempted from the clearing obligation under their third-country’s national law. Additionally, ESMA recommends that NCAs apply their risk-based supervisory powers in their day-to-day enforcement of applicable legislation in this area in a proportionate manner.

The Council and the European Parliament reached a provisional agreement on 7 February 2024. The political agreement on the EMIR 3 text provides for an exemption regime from the EMIR clearing obligation when the TC PSA is exempted from the clearing obligation under that third country’s national law.

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