The costs of regulation; the end of the OTC Derivative Markets or a new beginning?
The European Market Infrastructure Regulation (EMIR) emerged in August 2012 as Europe’s response, to the G20 2009 Pittsburgh Summit to manage OTC Derivative Markets. The European Securities and Markets Authority (ESMA) was created to draft and monitor EMIR, and quoted as saying “We won’t do this to the detrimental cost of participants”. Following this assurance, what have been the real costs of regulation to the financial services industry? Most industry participants would say “immense” and almost “prohibitive”.