On 17 November the final Regulatory Technical Standards (RTS) on the MiFIR derivatives trading obligation were adopted by the European Commission and sent for scrutiny by the European Parliament and Council. The latter bodies will have one month to flag any objections.

The obligation will cover fixed-to-float interest rate swaps denominated in EUR, USD and GBP, as well as certain index CDS. The Commission has followed ESMA’s proposals on the timing of the trading obligation, such that it will enter into effect on 3 January 2018 for Category 1 and 2 counterparties, and alongside the EMIR clearing obligation for Category 3 and 4 counterparties.

Separately, we understand that an initial EU equivalence decision regarding US venues is imminent, following on from the agreement of a “Common Approach” last month between the Commission and the CFTC. If members have any questions or comments, please contact Adam Jacobs-Dean, Oliver Robinson or Adele Rentsch.