EMIR Newsflash: RTS delaying clearing start date for Cat 3 counterparties published in OJ

The delegated regulation that delays the clearing start date for Category 3 counterparties has been published in the Official Journal and will enter into force on 19 May 2017.

The delegated regulation follows ESMA’s proposal in its November final report on this topic, and means that the clearing obligation will take effect on a harmonised basis for Category 3 counterparties across all three of the current products that are subject to mandatory clearing under EMIR. The revised clearing start dates for Category 3 counterparties will be as follows:

• G4 currency IRS: 21 June 2019 (previously 21 June 2017)
• European index CDS: 21 June 2019 (previously 09 February 2018)
• EEA currency IRS: 21 June 2019 (previously 09 February 2018)

The delayed clearing start dates only apply to Category 3 counterparties and not to Category 4 counterparties. The ESMA November final report had explicitly acknowledged that the effect of this delay is that the clearing start dates for Category 3 counterparties would be after the clearing start date for Category 4 non-financial counterparties, citing apparent evidence of the fact that non-financial counterparties in Category 4 do not necessarily have a more limited experience and operational capacity with OTC derivatives and central clearing than Category 3 counterparties.