The European Commission has adopted a Delegated Regulation with regard to RTS on criteria for determining whether derivatives subject to the clearing obligation under EMIR should be subject to the trading obligation. MiFIR lays down a trading obligation applicable to non-intra group transactions in sufficiently liquid contracts when traded by counterparties subject to clearing under EMIR. Once a class of derivatives has been mandated as subject to the clearing obligation under EMIR, ESMA must determine whether those derivatives should be subject to the trading obligation, meaning they can only be traded on a regulated market, MTF, OTF or a third country trading venue deemed to be equivalent by the Commission. Whether or not a class of derivatives subject to the clearing obligation should also be made subject to the trading obligation will be determined by the venue test and the liquidity test. The Delegated Regulation provides clarity in the determination of a class of derivatives that is sufficiently liquid. The Delegated Regulation will now be considered by the EU Council and the European Parliament.