Article 11 of EMIR1 sets out the risk-mitigation techniques that counterparties are required to put in place in relation to OTC derivative contracts not cleared by a CCP.
However, there are a number of points in relation to the scope of application of Article 11 and the timing for implementation which are still unclear. It will be essential for firms preparing for implementation of EMIR to understand the scope of the obligations under Article 11, and we urge the Commission and the European Supervisory Authorities (ESAs) to address these issues and to issue clarifications or provide some other solution to the problems raised.
Click here to download the letter from ISDA.
