The European Commission adopted the first delegated regulation to implement the clearing obligation under the European Market Infrastructure Regulation (EMIR) that makes it mandatory for certain over-the-counter (OTC) interest rate derivative contracts to be cleared through central counterparties. 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 will enter into force subject to scrutiny by the European Parliament and Council of the EU and will be phased in over three years to allow additional time for smaller market participants to begin complying.