File(s) under permanent embargo

Reason: This item is currently closed access.

Regulating OTC Derivatives: The Central Counterparty's Role and EMIR

conference contribution
posted on 12.06.2018, 13:16 by Mark Hsiao
The Chapter advances on an argument for the regulation of the OTC derivatives brings out the shadow banking transactions out of shadow or transforms shadow banking into resilient market-based finance. The argument is advanced on the contextual analysis of the European Market Infrastructure Regulation (EMIR) that requires the EU Member States to effect a mandatory reporting obligation to trade repository (TR) and a mandatory clearance on a list of designated OTC derivatives to be settled through a Central Counterparty (CCP). By viewing the both mandatory rules as business norms, it becomes clear that they are not just techniques to assist regulatory supervision, but also to regulate increasingly complex structured finance. The CCP not only acts as buyer and seller to each party in the same transaction by replacing each other with a novation contract, the process involves net-off mutual obligations resulting in a single net payment. By viewing payment obligation as the essential characteristic of the OTC derivatives, there is a clear shift to view the contract as a commodity.

History

Citation

Governing Shadow Banking, In Iris Chiu & Iain MacNeil (eds) Research Handbook on Shadow Banking: Legal and Regulatory Aspects, 2017

Author affiliation

/Organisation/COLLEGE OF SOCIAL SCIENCES, ARTS AND HUMANITIES/Leicester Law School

Source

Governing Shadow Banking, Institute of Advanced Legal Studies, London, England

Version

AM (Accepted Manuscript)

Published in

Governing Shadow Banking

Publisher

Elgar

Acceptance date

24/03/2017

Copyright date

2017

Publisher version

https://www.sas.ac.uk/events/event/7714

Notes

The file associated with this record is under embargo while permission to archive is sought from the publisher. The full text may be available through the publisher links provided above.

Temporal coverage: start date

24/03/2017

Temporal coverage: end date

24/03/2017

Language

en

Usage metrics

Categories

Keywords

Exports