ISDA and the British Bankers' Association (BBA) have responded to ESMA's consultation on draft RTS on contracts having direct, substantial and foreseeable effect within the Union and non-evasion of EMIR provisions. They ask for more guidance as to what constitutes a guarantee from an EU financial counterparty to a non-EU counterparty and on the situation where a non-EU counterparty breaches the clearing threshold as a result of the guarantees received. Regarding transactions between EU branches of non-EU entities, the associations ask for an internationally harmonised definition of foreign bank branches. They also believe that the arrangements listed in the draft RTS should not be deemed in principle artificial and therefore an avoidance of EMIR, as there may be perfectly legitimate business or commercial reasons for using them. (Source: ISDA and BBA Response on EMIR Non-Evasion)