On July 22, 2016, ESMA published a list of US Designated Contract Markets considered equivalent to a regulated market in the European Union. The list is based on a Commission Implementing Decision published in the Official Journal of the European Union on July 2, 2016, which deems 15 DCMs located in the United States are equivalent. The DCMs have been deemed equivalent for purposes of the definition of OTC derivatives in EMIR. This means that derivative contracts traded on these DCMs would not be deemed to be OTC derivatives and therefore not be subject an obligation to clear the transactions, report on them and undertake risk mitigation steps as if they were OTC, under EMIR. To be deemed equivalent, a third country market must comply with legally binding requirements in its home-state equivalent to MiFID and must also be subject to effective supervision and enforcement in that third country on an ongoing basis.

The Commission Implementing Decision is available at: http://eur-lex.europa.eu/legalcontent/EN/TXT/PDF/?uri=CELEX:32016D1073&qid=1470648008232&from=EN and ESMA’s library on post trading is available at: https://www.esma.europa.eu/databases-library/esma-library/?f%5b0%5d=im_esma_sections%3A24