Implementation of the FRANDT commercial terms to provide clearing services

This press release relates to the Public Statement on the “Implementation of the FRANDT commercial terms to provide clearing services”, published by ESMA on 11 June 2021, where ESMA indicates that there is a time gap between 18 June 2021 (when the FRANDT framework under level 1 regulation starts to apply) and the date of entry into force of the Delegated Regulation specifying the criteria to comply with FRANDT requirements.

Based on the considerations described in the ESMA statement, and taking into account the fact that the entities concerned face challenges in finalising the implementation of the FRANDT, the CSSF decided that it will not prioritise its supervisory actions towards clearing members and clients expected to provide clearing services in accordance with FRANDT commercial terms before the date the Delegated Regulation will apply.