Central Counterparty (CCP) open access as contained within the Markets in Financial Instruments Regulation (MiFIR), may face additional delays following the release of a European Council “non-paper” on the week of the 30th April by the Croatian presidency.
The paper stated that open access – the regulation which provides market participants the choice to which CCP clears their trades – could pose interoperability risks and face significant operational delays with the current COVID-19 crisis, coupled with the business continuity plans which are in effect.
When MiFIR became active on the 3rd January 2018, open access was given a 30-month exemption which is due to expire on the 3rd July 2020. The European Council working “non- paper” addresses the topic of open access and requests that the member states make a clear decision as to either support or oppose the possible further delay, if this subject was indeed brought to discussion at the European Commission or European Parliament.
It is possible, that due to the current pandemic, market participants have a variety of matters to deal and do not have the capacity to introduce new links from July, and thus may promote a further delay to the regulation.
The European Commission and European Parliament will have to make a decision as to the outcome of the regulation before the expiration in July.
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