ESMA`s latest consultation on indirect clearing arrangements under EMIR and MiFIR closed on 17 December 2015. The absence of consensus on the majority of issues is evidenced by the large number of disparate responses received from participants up and down the clearing chain. In particular, a stark criticism is that the twin RTS on indirect […]

Background EMIR introduced a clearing obligation in relation to “OTC derivative contracts” of any class that has been declared subject to a clearing obligation and which are transacted between particular types of counterparty[1].  MiFIR[2] extended the scope of the clearing obligation to all derivative transactions concluded on a regulated market.  There are three basic ways […]

ESMA has today published a consultation paper seeking to cut through the Gordian knot of EU-US CCP equivalence. On Friday 11 December 2015, the Commission approved the fourth extension of the QCCP deadline to 15 June 2016. The major bone of contention between regulators of the world’s two largest derivatives trading blocs has been the […]

Today marks the publication of the EMIR IRS Clearing RTS in the Official Journal (OJ) of the EU, crystallising the exact timeline for the obligation. The clearing of interest rate swaps will become mandatory according to the following schedule: Category 1- 21 June 2016 Category 2 – 21 December 2016 Category 3 – 21 June […]

In a meeting held 23 November 2015, the European Banking Committee of the European Commission reached a consensus on a fourth extension of the QCCP deadline. The transitional period relates to own funds requirements for exposures to central counterparties under CRR, where CCPs established in a third country not yet recognised under EMIR are nonetheless […]

The European Commission has today announced its adoption of five equivalence decisions in respect of Canada, Switzerland, South Africa, Mexico and the Republic of Korea. EU Commissioner Jonathan Hill said “I am pleased to announce these equivalence decisions for Canada, Switzerland, South Africa, Mexico and the Republic of Korea today.  Derivatives markets are global in […]

In a rather last-minute bid for consistency among its own flagship pieces of legislation, ESMA has informed the EC that the final draft MiFIR RTS on exchange-traded derivatives will be delayed pending a re-write of its EMIR counterpart. Steven Maijoor writes to Jonathan Hill, his opposite number at the EC, “In the interest of preserving […]

The EU Commission has today adopted delegated legislation mandating the central clearing of certain interest rate swaps (IRS).  The mandate covers IRS denominated in EUR, GBP, JPY and USD in the form of: Fixed-to-float IRS; Float-to-float IRS; Forward rate agreements (“FRA”); and Overnight index swaps (“OIS”). (“Covered Transaction Types”).  Certain Covered Transaction Types executed in […]

In response to member demand, ISDA has published a standardised EMIR Classification Letter. The letter serves as the bilateral equivalent to ISDA Amend’s online classification tool, enabling parties to exchange formal notice of their status  with respect to EMIR’s clearing and risk mitigation obligations. ISDA have also published an accompanying Guidance Note to assist in the […]