ESMA submits final RTS on derivatives clearing obligation under MiFIR

Published: 02 October 2017

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On 28 September 2017, the European Securities and Markets Authority (ESMA) issued its final draft Regulatory Technical Standard (RTS) on the derivatives trading obligation under MiFIR and submitted them to the European Commission for endorsement.  The draft RTS provide for the mandatory venue trading of fixed-to-floating IRS denominated in EUR, USD and GBP, as well as CDS indices iTraxx Europe Main and iTraxx Europe Crossover indices. These contracts would have to be traded on an EU regulated market, MTF or OTF, or a third-country venue deemed equivalent to an EU regulated market.

Both ESMA and the European Commission support starting the phase-in of the trading obligation alongside the effective date of MiFID II on 3 January 2018, with the trading obligation becoming effective alongside the clearing obligation for different categories of counterparty.  

The issue of the equivalence of third-country trading venues and the ability for EU counterparties to trade on such venues in compliance with the trading obligation still remains outstanding. AIMA anticipates the first set of jurisdictions to be deemed equivalent in November 2017.

If members have any questions or comments. Please contact Adam Jacobs-Dean, Oliver Robinson or Adele Rentsch.