ESMA has published a consultation paper on an aspect of the European Market Infrastructure Regulation (EMIR) relating to small financials. Views are being sought on the ESMA proposal to prolong the phase-in period for central clearing of OTC derivatives applicable to financial counterparties with a limited volume of derivatives activity by two years. The two year extension is intended to assist firms experiencing difficulties in connecting to central clearing counterparties as a result of cost issues and risks. The consultation, which seeks feedback on the difficulties these counterparties may be facing, is seeking views until 5 September 2016.