From 21 June 2016, firms will have to centrally clear certain classes of interest rate swaps. This marks an important milestone in implementing EMIR – and follows the G20 commitment to clear all standardised OTC derivative contracts, where appropriate, through central counterparties (CCPs). The clearing obligation will cover the following classes of OTC interest rate derivatives denominated in the G4 currencies (EUR, GBP, JPY and USD):
- fixed-to-float interest rate swaps;
- float-to-float swaps
- forward rate agreements; and
- overnight index swaps.
The next clearing obligations will cover index credit default swaps as well as interest rate swaps denominated in NOK, PLN and SEK.