Non-deliverable FX forwards
ESMA confirms that EMIR clearing requirements will not apply to non-deliverable FX forwards, though reserves its position to impose these standards at a future date.
Interest rate swap clearing
ESMA has now issued its opinion on the modifications made by the European Commission (the “Commission”) to its draft regulatory technical standards submitted to the Commission on 1 October 2014.
ESMA endorses the Commission’s modifications regarding delaying the start date of the frontloading obligation, though proposes a broader application of the intra-group exemption from clearing meaning that, for a three year period, “financial counterparties” can apply for this exemption from clearing when they enter into transactions with non-EU counterparties who have not yet been subject to a “declaration of equivalence”.