ESMA has published an opinion on the impact of EMIR on the UCITS Directive. ESMA is calling for a modification of the UCITS Directive to take into account the clearing obligations for certain types of OTC financial derivative transactions under EMIR. In its opinion, ESMA has stated that the UCITS Directive should not distinguish between OTC financial derivative transactions and exchange-trade derivatives (ETDs); rather a distinction should be made between cleared and non-cleared OTC financial derivative transactions. ESMA believes that counterparty risk limits should be calibrated to different types of segregation arrangements taking various different elements into account. ESMA has stated that the UCITS Directive should not apply counterparty risk limits to clearing members but should apply some counterparty risk limits under "omnibus client segregation". ESMA also believes that the UCITS Directive's counterparty risk limits to EU CCPs and some non-EU CCPs recognised by ESMA should take into account the relatively low counterparty risk of these entities.