European Securities and Markets Authority (ESMA) presented a set of Draft Technical Standards earlier this month, with regard to regulation on over-the-counter (OTC) derivatives, Central Counterparties (CCPs), and Trade Repositories.
ESMA has to write about 40 technical standards to meet a G20 pledge for reform of the OTC derivatives market, in order to protect the market participants from significant systematics risk. This pledge is a direct response to the market failure of 2008, which has largely been blamed on the freely functioning OTC markets.
However, the standards proposed by ESMA have been under...


