On April 21, 2016, a Commission Delegated Regulation, which amends Regulatory Technical Standards on the time horizons for liquidation of different classes of financial instruments, was adopted by the European Commission. Under EMIR, central counterparties are required to call and collect adequate initial margins to cover the risk stemming from a cleared contract. The proposed delegated regulation amends the margin period of risk for clients for EU CCPs from a two-day period for clients’ accounts (as under the original RTS) to a one-day gross basis. EU CCPs will therefore be able to offer both a two-day net margin model and a one–day gross margin model. The delegated regulation will come into force twenty days following publication in the Official Journal of the European Union.

The delegation regulation is available at: https://ec.europa.eu/transparency/regdoc/rep/3/2016/EN/3-2016-2302-EN-F1- 1.PDF. You might like to view our client note: http://www.shearman.com/~/media/Files/NewsInsights/Publications/2015/12/UClearing-Obligation-for-Interest-Rate-Swaps-Set-for-June-2016-FIAFR-12.pdf.