Notification to a trade repository requires a considerable amount of resources and preparation (e.g.B. setting up internal systems, selection and registration with a trade repository) and, as a result, many non-trading counterparties have attempted to delegate their reporting obligation to their trading counterparty or to a third party. In response to this situation, many swap traders have developed their own “in-house” declaration delegation agreements, although it is understandable that they are unilateral, given that there is no obligation for traders to offer such services and some offer this service at no additional cost. As a result, many counterparties had to decide whether to accept a delegation agreement on unfavourable terms or to set up the infrastructure to be able to report on their own behalf. As the US and EU move closer to a deal, margin issues remain unresolved, including that European CCPs should calculate the margin on a two-day basis and in the US on a one-day basis, which 41% said may be necessary. Margin increase in Europe as well as margin-based differences, with the United States requiring margin to be maintained on accounts receivable on a gross basis, while Europe allows the booking of accounts receivable on a net basis. In response to this persistent disagreement, the Commission recently extended the transition period for capital requirements for exposures of the UNION Banking Group from 15 June 2015 to 15 December 2015 in order to avoid higher capital requirements being imposed on EU banks that are not authorised or recognised under EMIR. EU and US regulators therefore have six months to settle disputes, although the debate continues at the time of the unsolved letter. While these equivalence findings continue to be formally considered, further reflection and discussion continues in the sector on how best to process and make the equivalence (or analog) decision. IOSCO suggested that it might be able to play a role in developing a number of principles – perhaps similar to those published by ISDA in August 2013 – and providing for equivalence rules (and similar intermediaries), and ISDA continues to raise awareness of these issues and try to advance them.
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