Recital 4

(4)On 1 October 2013, the Commission received the technical advice of the European Securities and Markets Authority (‘ESMA’) on the legal, supervisory and enforcement arrangements in Hong Kong ⁴ , including on the operational risk mitigation techniques applicable to OTC derivative contracts not cleared by a CCP. In its technical advice, ESMA concluded that, given that Hong Kong was still in the process of finalising its regulatory regime for the clearing obligation, non-financial counterparties and risk mitigation techniques for uncleared contracts, it was not in a position to perform a conclusive and complete analysis and deliver a technical advice on those matters.