EMIR requires ESMA to develop draft regulatory technical standards (RTS) in relation to the clearing obligation. ESMA consulted stakeholders with a discussion paper and four consultation papers. The final report incorporates the feedback received to the consultation on the CDS classes and explains the reasons for reflecting or not the stakeholders proposals to the draft RTS. It follows the same structure as the consultation paper.
Section 3 provides explanations on the procedural aspects of the clearing obligation. Section 4 provides clarifications on the structure of the classes of OTC credit derivatives that are proposed for the clearing obligation. Section 5 covers the determination of the classes of OTC credit derivatives that should be subject to mandatory clearing. Section 6 presents the approach for the definition of the categories of counterparties, and the proposals related to the dates from which the clearing obligation should apply per category of counterparty. Section 7 provides explanations on the approach considered for frontloading and the definition of the minimum remaining maturities of the contracts subject to it.
The final report is submitted to the European Commission for endorsement of the draft RTS presented in Annex III. From the date of submission the European Commission should take the decision whether to endorse the RTS within three months.