A press release was issued by the EC today on the adaptation of mandatory clearing for IRS related products. This is the first of the regulations under EMIR to implement the mandatory central clearing in a so-called "Delegated Regulation".
The press release and the Regulation are vague on the time lines that are set but in a short conversation with the EU we were able to get a somewhat clear picture:
- The Regulation was adopted today but due to the vacation of the Parliament it will go into effect on 21 August 2015.
- Then there will be a 3 month 'scrutiny' period for comments, changes etc.
- The Regulation could still be amended in this period and could consequently be delayed
- If not, it will be published in the Official Journal of the EU and will enter into force 20 days after that approximately 10 December 2015.
For the market this means that for Cat 1 (Clearing Members), the rule will be in effect 6 months after 10 December. For Cat 2 (Financial counterparties and AIF's with a high level of activity, 12 months after 10 December. For Cat 3 (Financial counterparties and AIF's with a lower level of activity it will be 18 months and for non-financials it will be three years.
You can find the full press release here