The European Market Infrastructure Regulation (EMIR) is likely to be pushed into 2012 and may not be signed off until February, according to Brussels-based lobbyists familiar with the discussions. EMIR is Europe's key piece of derivatives reform which aims to transform the way derivatives are traded in Europe. The new rules will require over-the-counter derivatives trades to be pushed through a clearing house, and will also require firms to report data about their trades to a central trade data repository.
European policymakers had expected to agree the content of the text by the end of November, but a number of outstanding issues have prevented the Council and Parliament from reaching agreement during the final stages of the negotiations, known as the 'trialogue'.
The issues include whether derivative clearing houses should be entitled to access to the trading feeds provided by exchanges and the extent to which certain types of institutions will be exempted from the new rules.
There is also disagreement over the extent to which Europe's new securities watchdog, the European Securities and Markets Authority (ESMA), will be responsible for regulating clearing houses. The Parliament favours increasing ESMA's power and authority to regulate clearing houses directly, while the Council hopes to retain control at national supervisory level.
The European policymakers are also divided on so-called 'third-country access', which describes the powers that non EU-regulators have over actions that occur inside the EU.
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