Today’s decision implements the clearing obligation under the European Market Infrastructure Regulation (‘EMIR’). It refers to some types of credit default swaps.
The European Commission has adopted a new set of rules that requires certain over-the-counter (OTC) credit derivative contracts to be cleared through central counterparties (CCPs). Mandatory central clearing is a vital part of the response to the financial crisis; it follows commitments made by world leaders at the G-20 Pittsburgh Summit in 2009 to improve transparency and mitigate risks.
More information via press release: http://europa.eu/rapid/press-release_IP-16-463_en.htm
