Press Release: Financial stability: new Commission rules on central clearing for interest rate derivatives

On 06 August 2015, the European Commission adopted new rules that make it mandatory for certain over-the-counter (OTC) interest rate derivative contracts to be cleared through central counterparties. This followed commitments made by world leaders at the G-20 Pittsburgh Summit in 2009 to improve transparency and mitigate risks.

The decision takes the form of a Delegated Regulation- the first such to implement the clearing obligation under the European Market Infrastructure Regulation ('EMIR'). It covers interest rate swaps denominated in euro, pounds sterling, Japanese yen or US dollars that have specific features, including the index used as a reference for the derivative, its maturity, and the notional type (i.e. the nominal or face amount that is used to calculate payments made on the derivative).

The clearing obligations entered into force subject to scrutiny by the European Parliament and Council of the EU, and was set to be phased in over three years to allow additional time for smaller market participants to begin complying.

ESO: Background information: Commission asks for input on the implementation of and first experience with the European Market Infrastructure Regulation (EMIR) http://www.europeansources.info/record/press-release-commission-asks-for-input-on-the-implementation-of-and-first-experience-with-the-european-market-infrastructure-regulation-emir/

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