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Feedback provided on EC proposal for changes to EMIR

Insurance Europe has provided feedback to the European Commission on its proposal for amending key areas of the European Market Infrastructure Regulation (EMIR) regulation.

Insurance Europe welcomed some of the Commission's proposed changes to EMIR. These included removing the requirement for dual-side reporting of exchange-traded derivatives and the attempt to address the access issues that small and medium size insurers face when trying to secure arrangements with clearing members for the provision of central clearing services.

However, Insurance Europe also outlined several concerns about EMIR, including the need for intragroup transactions to be exempted from collateralisation. Regarding reporting requirements, Insurance Europe said it would welcome the introduction of single-side reporting across the board, and not just for exchange traded derivatives.

Moreover, Insurance Europe reiterated its concerns about the practical application of EMIR, which requires insurers to post cash when centrally clearing. Therefore, Insurance Europe welcomed the mandate given by the Commission to the European Supervisory Authorities to investigate practical solutions for posting non-cash collateral and expressed its desire to contribute to this work.

Published 25 July 2017