Securities Supervision

GDV’s position on planned regulatory standards for OTC Derivatives

GDV has contributed to consultations of the European Securities and Markets Authority (ESMA) on the Draft Technical Standards for the Regulation on OTC Derivatives, CCPs and Trade Repositories. Insurance groups are primarily affected by the regulation in their role as institutional investors. Furthermore, the proposed regulation affects the execution of risk management transactions within one insurance group.

Against this background, we would like to raise the following points:

  • The scope of the future regulation on OTC derivatives should be limited to transactions executed within the European Union. The application of the regulation to operations outside the EU may cause overlapping and parallel applicability of regulatory regimes.
  • The draft deadlines for a timely confirmation of non-CCP cleared contracts seem too ambitious. Larger insurance companies particularly need more flexibility, if they organize their reporting centrally.
  • Having no market impact, the publishing of intra-group transactions is not necessary.
  • Due to German insurance regulatory law, securities for OTC Derivatives business may not be restricted assets (“Sicherungsvermögen und sonstiges gebundenes Vermögen”). This could lead to a decrease of single German insurers’ involvement in the OTC Derivatives business.

The GDV’s complete position paper is available in the download section.


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on ESMA Discussion paper as of 16 February 2012 regarding Draft Technical Standards for the Regulation on OTC Derivatives, CCPs and Trade Repositories