Steven Maijoor, chairman of the European Securities and Markets Authority (ESMA) said the regulatory reform in the European Union’s securities markets is only half done with more rules to come. Maijoor noted that the focus of regulators now shifts to implementation and supervision.
“It’s the biggest overhaul of financial markets in history,” he said at a conference yesterday. According to a report from Reuters, Maijoor noted that “ESMA would say in coming days how banks should deal with ‘frontloading,’ or a requirement for swaps already in circulation to be cleared if that class of product is later deemed to require mandatory clearing.”
Reuters also noted that ESMA is set to announce at the end of the year which swaps must be cleared, “a process that involves consultation with the industry and the European Parliament lasting 6-9 months.” Maijoor said that he hopes to find a way to work faster in making that determination. “In some cases we might need to react more quickly and a technical standard is not the instrument which allows such a quick intervention,” he said.
Read more about Maijoor’s comments online from Reuters.