EMIR: EU Commission adopts Delegated Regulation on clearing obligation for credit derivatives

The EU Commission has adopted a draft Delegated Regulation on the clearing obligation set out in the European Market Infrastructure Regulation (EMIR). The draft Delegated Regulation sets out regulatory technical standards (RTS) in relation to certain credit default swaps (CDS) that are denominated in Euros and determines the classes of CDS derivative contracts that are subject to the clearing obligation and four different categories of counterparties for which different phase-in periods apply.

This clearing obligation will enter into force following an objection period for the EU Parliament and Council and then phased in over three years to provide additional time for smaller market participants to comply.