The European Securities and Markets Authority has issued final draft regulatory technical standards (RTS) related to derivative transactions by non-EU counterparties.The RTS implement provisions of the regulation on OTC derivatives, central counterparties and trade repositories (EMIR). EMIR provisions regarding central clearing and risk-mitigation techniques also apply to those OTC derivatives entered into by two non-EU counterparties which have a direct, substantial and foreseeable impact on EU financial markets. Ensuring that risks exposed to the EU's financial markets by non-EU transactions are addressed by regulation and supervision is key in ensuring safer markets.The draft RTS will cover OTC derivative contracts concluded after the date the RTS becomes applicable. The draft RTS also specifies cases of transactions aimed at evading EMIR's regulatory requirements which would be the case for derivatives contracts or arrangements concluded without any business substance or economic justification, and in a way to circumvent the clearing obligation and risk mitigation provisions.The draft RTS have been submitted for endorsement to the European Commission and it has three months to decide whether to endorse the final draft, it must then submit the endorsed RTS to the European Parliament and the Council.