Norway, Poland and Sweden to join the EMIR clearing party
On 10 November 2015 ESMA published a final report delineating additional draft RTS on IRS clearing under Article 5 EMIR. The additions, included as Annex III to the report, propose the mandatory clearing of FRAs and fixed-float IRS denominated Norwegian krone (NOK), Polish zloty (PLN) and Swedish krona (SEK). ESMA believes the inclusion of these classes will act to reduce systemic risk in both their respective local markets and generally across the EU. The NOK, PLN and SEK join those IRS denominated in EUR, GBP, USD and JPY which were approved by the Commission in August 2015, and are expected to begin clearing in the second quarter of 2016. ESMA has sent the final draft to the Commission for its approval, subject to the usual 3-month assessment period and subsequent scrutiny by the Parliament and the Council. The Delegated Regulation will enter into force 20 days after its publication in the OJ. The report also contains a summary of the comments received in the May 2015 consultation on the previous draft RTS and an explanation of how some of this feedback has been incorporated into this final iteration.