The Futures Industry Association (FIA) is urging the European Securities and Markets Authority (ESMA) not to load clearing service providers with obligations that go beyond their role, as the regulator drafts new rules on margin transparency under EMIR 3.0. The stance echoes concerns raised earlier by industry group EACH.
The consultation looks at how central counterparties (CCPs) and clearing service providers (CSPs) should disclose information on margin models and simulations. FIA points to EMIR Article 38, which places the main transparency duty on CCPs, while CSPs are expected to pass on CCP information and disclose add-ons when they apply them.
Survey data collected by FIA shows that most clients, 86.5 percent, are charged only CCP margin. About 10.5 percent face CCP margin plus a simple multiplier, while just 3 percent are subject to proprietary CSP models. The association argues this makes CCP transparency the central issue, with CSPs’ role more limited.
Extra burdens
Some proposals in ESMA’s draft RTS go further, requiring CSPs to create client-specific simulations, including two scenarios tied to each client’s individual risk. FIA warns this would be unrealistic for firms handling hundreds or thousands of clients, while offering little extra clarity for end users.
FIA also calls for a phased implementation. Since CSPs’ obligations depend on CCPs first rolling out their own transparency measures, CSPs could be unable to comply unless deadlines are staggered.
The association warns that rules going beyond international standards could weaken the competitiveness of EU-based providers. Instead, it argues, the focus should stay on CCP disclosures, while CSP requirements remain proportionate and tied to actual risk.
