Does ESMA Have Jurisdiction in the US or is That Strictly Dodd-Frank?

EMIR doesn’t have many extraterritorial demands when it comes to reporting aspects (and ESMA is just the regulator policing EMIR and other EU financial Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term). If you are a non-EEA entity you have no reporting responsibilities under EMIR and if an EU entity is trading with you they are able to report a one-sided trade from their perspective.

ESMA has expressed the preference that non-EEA counter parties obtain Legal Entity Identifiers but have no way of enforcing this. However, when it comes to EMIR clearing obligations there is a little wrinkle which could affect non-EEA firms.

If you are a category of firm which would be subject to a mandatory clearing obligation if you were in the EU, then that trade will be considered subject to mandatory clearing anyway, and either both parties will need to submit their side of the transaction to an authorised CCP, or the EU party will need to submit both sides. This is likely to cause some falling out among international trading partners (but in the short term will be confined to large Interest Rate and Credit Default Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term contracts).