This week ESMA sent a letter to the European Commission stating its intention on easing the frontloading requirements under EMIR with the aim to reduce the uncertainty (and unintended consequences) this requirement would create in the market. This announcement comes at a time where the topic of frontloading has been at the forefront of thoughts for many derivatives market participants who are well aware the uncertainty frontloading creates and possible negative impact on risk hedging and financial stability – not to mention the operational headache.
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