After lengthy negotiations, the European Commission has on 6 August 2015 adopted the draft of a Delegated Regulation on regulatory technical standards regarding certain over-the-counter (OTC) interest rate derivative contracts (IRDs). The central clearing obligation regarding certain OTC derivatives is based on the European Market Infrastructures Regulation (Regulation (EU) No. 648/2012, EMIR) and is an essential part of the actions taken in reaction to the financial crisis. Its step-by-step implementation is part of the heads’ of state and government committment made at the G20 summit 2009 in Pittsburgh to increase financial market’s transparency and to decrease risks.
In addition to the Delegated Regulation adopted in 2013 (Regulation (EU) No. 149/2013) which already set out details with regard to the clearing obligation, the new regulation shall in particular determine which categories of OTC interest rate derivatives are subject to the clearing obligation. Furthermore, the new regulation shall determine different transition periods for different categories of counterparties to give small market players sufficient time for the implementation.