Esma’s Brexit novation relief falls short

Proposed clearing reprieve too narrow to alleviate burden of mass swaps migration

Shaky ground: draft RTS proposed by Esma may be too narrow to overcome hurdles

Europe’s chief markets regulator is urging lawmakers to remove an obstacle standing in the way of a Brexit-driven migration of non-cleared swaps from London to the European Union. But draft regulatory technical standards (RTS) proposed by the European Securities and Markets Authority (Esma) may be too narrow to overcome the legion of hurdles that swaps users face when shifting their exposures, experts warn.

Esma’s proposed amendments to the European Market Infrastructure Regulation (Emir),