EACT Response to ESMA/EBA/EIOPA discussion paper on risk mitigation techniques for OTC derivatives

The EACT has responded to the discussion paper from ESMA/EBA/EIOPA on risk mitigation techniques for OTC derivatives. "The crucial areas covered by the document concern the potential requirements for collateral on OTC derivative transactions by corporates - 'where the corporate concerned is above the 'clearing threshold' and the contracts cannot be cleared through a CCP. "We are making two particularly important points: that there appears to be a fundamental inconsistency in the regulatory suggestion that banks should not be allowed to take a limited credit position on their OTC derivative activity with corporates, whilst banks are at the same time free to take credit risk through their lending activities; and that we are strongly opposed to a one-way exchange of collateral between the banks and corporates.  Our response is here and you can view the ESMA/EBA/EIOPA discussion paper here.

View Document

News


EACT Briefing Focus: Instant Payment

SEPA Instant Payment, an innovative instrument launched in Nov. 2017 by the European Payments Council currently has 2500+ participating banks. It provides corporate treasurers with both a business enabler and an opportunity to improve internal processes and gain efficiencies.

View More

EACT Newsletter - December 2018

The newsletter features articles about the changing Euro interest benchmark landscape, the implications of Brexit on the derivatives markets, new Schuldschein loan agreements, the latest regulatory updates and more.

View More

EACT Newsletter - September 2018

The newsletter features articles about the new Journeys to Treasury report, SWIFT gpi, the latest regulatory updates and more.

View More

Journeys to Treasury 2018: The Digital Treasury Becomes a Reality

Journeys to Treasury 2018 explores the digital treasury in practice, and how leading treasurers are protecting, empowering and adding value to the business using innovative technologies and banking services.

View More

EACT Briefing Focus: SWIFT gpi

SWIFT gpi will significantly improve international payment processes and address many of the issues treasurers are facing today. Read this special EACT briefing to find out more.

View More

Contact Us
Email: secretary@eact.eu
Telephone: +33 (0)1 42 81 53 98
Follow us on Linkedin

Privacy policy
EACT Head Office
3 rue d’Edimbourg
CS 40011
F-75008 Paris
France