Clearing obligation for Category 3 with new date

On 14 Nov 2016 ESMA has published its final report regarding the amended application of the clearing obligation that financial counterparties in the category 3 need to comply with under EMIR (the European Market Infrastructure Regulation).

ESMA has proposed to postpone the phase-in period for central clearing of OTC derivatives applicable to financial counterparties with a limited volume of derivatives activity. ESMA’s report proposes to amend EMIR’s Delegated Regulations 2015/2205, 2016/592 and 2016/1178 on the clearing obligation in order to prolong, by two years, the phase-in for financial counterparties with a limited volume of derivatives activity – classified in Category 3 under EMIR Delegated Regulations. ESMA is also proposing to align the three compliance dates for Category 3 firms in the Delegated Regulations regarding Interest Rate Swaps and Credit Default Swaps. The newly proposed compliance date would be 21 June 2019.

The EC has approved the final report. On 24 April 2017 Commission Delegated Regulation (EU) 2017/751 was published in the Official Journal. The approved date is 21 June 2019. The Regulation enters into force on 19 May 2017. The first date for the clearing obligation for interest rate swaps denominated in the G4 currencies is postponed by 2 years from 21 June 2017 to 21 June 2019.