A new study found the two-way initial margin rules for non-cleared derivatives will also result in a collateral shortfall of $60 billion alone.
The delay from ESMA may not have gone far enough according to some market experts who believe challenges persist despite time extension.
After months of lobbying, trade associations and market participants get their wish as ESMA delays introduction of CSDR's settlement discipline regime.
Trade associations have said cash bond markets should be excluded from initial rollout of the CSDR buy-in regime until the regulation’s impact on liquidity is fully assessed.
The FCA has made it clear to asset managers it would be evaluating their efforts to implement SMCR during the first half of 2020.
The consensus among both buy- and sell-side firms is that the mandatory buy-in regime will have significant negative implications on Europe’s capital markets.
Clearstream’s licence was granted by the German Federal Financial Services Authority BaFin and is effective immediately.
Despite the extension to comply with the final phase of the uncleared margin rules, major operational challenges remain for buy-side firms.
ESMA stated the growth in alternative investment funds NAV was associated to increased launches of new products in Europe.
Even though the Capital Markets Union (CMU) has had a somewhat lethargic start, a new EU leadership could galvanise the process once again.