On 11 July 2014, the European Securities and Markets Authority (“ESMA”) launched its first consultation on asset classes of derivatives to be subject to mandatory clearing under the European Markets Infrastructure Regulation (“EMIR”). ESMA’s consultation papers included draft regulatory technical standards (“RTS”) for clearing of interest rate swaps and credit default swaps through central clearing houses authorized or recognized under EMIR. ESMA proposes four classes of IRS to be cleared: basis swaps, fixed-to-float IRS, forward rate agreements and overnight index swaps. For CDS, ESMA proposed European untranched Index CDS to be cleared. ESMA has decided that the clearing obligation for equity and interest rate futures and options is not currently appropriate. The IRS consultation is open until 18 August 2014, the CDS consultation is open until 18 September 2014.

The consultation papers are available at: http://www.esma.europa.eu/news/Press- release-ESMA-defines-central-clearing-interest-rate-and-credit-default- swaps?t=326&o=home.