ESMA CONSULTS ON THE CLEARING OBLIGATION UNDER EMIR
The European Securities and Markets Authority (ESMA) has today published a Consultation Paper (CP) on the Clearing Obligation under EMIR. The CP deals with an amending draft RTS regarding the treatment of intragroup transactions with a third country group entity. ESMA’s consultation seeks stakeholders’ views on a proposed extension of the temporary intragroup exemption and is open for feedback until 30 August 2018.
The clearing obligation requires a range of interest rate and credit derivatives to be cleared. However, intragroup derivative transactions with a third country entity, and where certain conditions are satisfied, currently do not have to be cleared due to a deferred application date in the Delegated Regulations on the clearing obligation. However, the deferred dates are soon approaching.
The consultation paper sets out the reasons to extend these dates.
The public consultation on the draft RTS on the clearing obligation runs until 30 August 2018. ESMA will then review all the responses to this consultation submitted by the deadline in order to finalise the draft RTS.