The International Swaps and Derivatives Association (ISDA) published a classification letter that will enable counterparties to notify each other of their status for clearing and other regulatory requirements under EMIR. Under the Regulation, financial and non-financial counterparties must comply with certain regulatory obligations, the application of which often depends on the classification of both parties to a given transaction. The classification letter enables derivatives counterparties to classify themselves according to the EMIR taxonomy by answering a series of questions set out in the letter.