Esma set to neuter Emir frontloading rule

Legislators agree on a fix for ‘huge problems’ caused by frontloading

esma-building
European Securities and Markets Authority headquarters

European legislators have agreed to sideline the so-called frontloading provisions of Europe's swap clearing rules, according to members of the European Parliament (MEPs) who took part in crunch talks in Brussels yesterday. A formal letter outlining the plans is now expected to be sent by the European Securities and Markets Authority (Esma) to the European Commission (EC) – the other two participants in the three-way meeting. Frontloading requires outstanding swaps to be cleared if they