ESMA proposes to ease frontloading burden: ESMA has written to the Commission to seek its views on addressing the uncertainty created by the frontloading requirement under EMIR. The concern is that the clearing obligation could apply to certain OTC derivatives that are entered into from the moment relevant CCPs receive authorisation as compliant with EMIR. ESMA identifies two different periods in the frontloading window: from CCP authorisation to entry into force of the clearing obligation, and from entry into force to actual application, as the clearing obligation may be subject to phase-ins depending on the class of derivative. Uncertainty is greatest in the first period, given that counterparties do not know whether and when certain OTC derivatives they enter into will be subject to the clearing obligation. ESMA is proposing to apply the frontloading obligation only to contracts, subject to their remaining maturity, entered into after the entry into force of the clearing obligation but before its applicability. (Source: Frontloading Requirement Under EMIR)