On April 13, 2016, the ISDA published an updated ISDA European Markets Infrastructure Regulation Classification Letter. The purpose of the Classification Letter is to assist market participants in their management of regulatory obligations under the EMIR. The obligations imposed by EMIR differ depending on the counterparties to each transaction. The Classification Letter sets out a number of questions that derivative counterparties can reply to and send to their counterparty in order to allow their counterparty to determine their status under EMIR taxonomy. The letter not only provides a means by which entities can make known their own classification, but also gain access to other entities’ classifications according to the EMIR taxonomy. The letter has been updated to take into account the forthcoming clearing obligation for interest rate swaps which will be phased in from September 1, 2016, and the credit default swaps clearing obligation which comes into force on April 19, 2016, and is subject to approval by the European Parliament and Council of the European Union.

The classification letter is available at: http://assets.isda.org/media/6b3143db-2/7773c651.doc.

The explanatory memorandum is available at: http://assets.isda.org/media/6b3143db-2/9fa1be3f-pdf/