On October 1, 2014, ESMA launched a consultation on proposed draft RTS on the clearing obligation for a class of foreign exchange non-deliverable forward (FX NDF) OTC derivatives. The consultation paper includes the proposed draft RTS and covers: (i) an analysis for the determination of the class of OTC FX NDF that ESMA is proposing as being subject to the clearing obligation under the European Market Infrastructure Regulation (“EMIR”); (ii) the counterparties that ESMA proposes should be subject to the obligation and the implementation dates for each category of counterparty; and (iii) the proposed approach for frontloading and the definition of the minimum remaining maturities of the contracts subject to frontloading. The clearing obligation for relevant FX NDFs will come into effect six months after the RTS come into effect for clearing members, after 12 months for financial counterparties and alternative investment funds, after 18 months for smaller financial counterparties and alternative investment funds and after 33 months for non-financial counterparties. The consultation is open until November 6, 2014. ESMA is required to provide its final draft RTS to the European Commission by December 12, 2014.

The consultation paper is available at:

http://www.esma.europa.eu/news/ESMA-consults-draft-standards-clearing-foreign-exchange-non-deliverable- forwards?t=326&o=home.