ESMA: Final Report On The Clearing Obligation For Financial Counterparties With A Limited Volume Of Activity

Executive Summary

Reasons for publication

Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC Derivatives, CCPs and Trade Repositories (EMIR) requires ESMA to develop draft regulatory technical standards (RTS) in relation to the clearing obligation, in particular on the dates from when the clearing obligation takes effect. Following from this mandate, there are now three Commission Delegated Regulations on the clearing obligation that are based on draft RTS submitted to the European Commission by ESMA.

However, some financial counterparties with a limited volume of activity are facing difficulties in preparing for the clearing obligation. In this context, ESMA consulted stakeholders with a consultation paper on the issues these counterparties are facing in establishing access to clearing, on the regulatory developments affecting access to clearing, on the relative systemic importance of these counterparties in the OTC derivative market and on a proposal to amend the phase-in period of the clearing obligation.

The final report covers the draft RTS amending the three Commission Delegated Regulations on the clearing obligation with respect to financial counterparties with a limited volume of activity.

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