ESMA issues technical standards on indirect clients

26 May 2016

ESMA's RTS clarify provisions of indirect clearing arrangements for OTC and exchange-traded derivatives and help to ensure consistency and that an appropriate level of protection for indirect clients exists.

The RTS provide provisions on the following key points:

ESMA has sent its draft RTS on indirect clients for endorsement to the European Commission which has three month to accept or reject them. This is followed by a non-objection period by the European Parliament and Council. 


The publication of today’s final draft RTS follows a public consultation conducted end-2015. In general, EMIR introduced a clearing obligation for certain OTC derivative contracts.  MiFIR extended the scope of the clearing obligation to all derivative transactions concluded on a regulated market.  This means that the vast majority of derivative transactions will be cleared. Counterparties will clear their transactions by becoming a clearing member itself, by becoming a client of a clearing member or by establishing an indirect clearing arrangement with a clearing member.

Full RTS