EMIR - Clearing obligation

To which OTC derivatives does the clearing obligation apply?

The clearing obligation only applies to standardised classes of OTC derivative contracts that have been specified as being subject to this obligation, and only to contracts concluded between parties specified in EMIR, e.g. between two financial counterparties or between a financial counterparty and a specified non-financial counterparty.

ESMA maintains information pages on the clearing thresholds and derivative classes to which the clearing obligation applies.

EMIR 3.0 adjustments to the clearing obligation

In EMIR 3.0, the clearing obligation for financial and non-financial counterparties have been amended. EMIR 3.0 introduces an exception for transactions with third-country pension funds, which means that the clearing obligation does not apply if the counterparty is a pension fund exempted in its home jurisdiction. EMIR 3.0 also provides an exemption for post-trade risk reduction (PTRR) transactions, provided they are risk-reducing, do not affect price formation in the market and are provided by a PTRR service provider notified to ESMA. For the intra-group exemption from the clearing obligation, see under intra group transactions.