ISDA and FIA Europe submit a joint response to the ESMA consultation paper clearing obligation No. 1 IRS

FIA Europe strongly support the overarching goal of reducing systemic risk in OTC derivative markets by introducing obligation to clear certain classes of OTC derivatives. There are still significant concerns with some aspects of ESMA's regulatory standards, in particular phase-in periods and frontloading. Identification of contracts subject to the clearing obligation; and counterparty categorisation.