ALFI provides feedback regarding the draft EC’s implementing decision on the equivalence with the US to exchange collateral

22 Feb 2021 | Statements and Position Papers  


On 20 January 2021, the European Commission published a draft Implementing Decision setting up an equivalence in the field of collateral exchange for OTC Derivatives transactions non centrally cleared by a CCP.

Access to the Implementing Decision

Stakeholders were invited to provide feedback limited in size to 4000 characters by 17 January 2021.

ALFI provided feeback in time, putting emphasis on an unlevelled playing field between the EU and the US. Indeed, the provisions at stake imply the implementation of burdensome and unjustified procedures for the investment fund industry (eligible only to the last and less risky phases of UMR), and in particular for the small sized funds. The corresponding provisions increase the cost of collateral in the EU and thus preclude an effective equivalence with the US regime.

Because the RTS corresponding to the Article 11(15)(aa) of EMIR Refit have finally not been issued, the financial industry does not benefit from a fair and complete information to assess the actual extent of the equivalence project. The equivalence is dependent on the actual endorsement of the different RTS. Consequently, in ALFI’s view, the equivalence project should be postponed to at least 1 month after the official publication of the last RTS.