On November 21, the following Commission Delegated Regulations (Delegated Regulations) were published in the Official Journal of the European Union (OJEU):

  • Delegated Regulation ((EU) 2017/2154) (MiFIR IC RTS), which supplements the Markets in Financial Instruments Regulation (Regulation 600/2014) (MiFIR) with regard to regulatory technical standards (RTS) on indirect clearing arrangements); and
  • Delegated Regulation ((EU) 2017/2155) (EMIR IC RTS), amending Delegated Regulation (EU) 149/2013 with regard to RTS on indirect clearing arrangements, to reflect a mandate under Article 4(4) of the European Market Infrastructure Regulation (Regulation 648/2012) (EMIR).

The European Commission (EC) adopted the Delegated Regulations on September 22. They will become effective December 11, 20 days after their publication in the OJEU, and will apply from January 3, 2018, which is when the Markets in Financial Instruments Directive II (Directive 2014/65) (MiFID II), along with MiFIR, will repeal and recast the Markets in Financial Instruments Directive (Directive 2004/39/EC).

The aim of the Delegated Regulations is to:

  • simplify and clarify the requirements relating to managing the default of a client providing indirect clearing services;
  • adapt account structures to rationalize the offering of indirect clearing services;
  • allow indirect clearing services to be provided in chains going beyond the client of a direct client, so long as appropriate and equivalent protection is ensured throughout the chain; and
  • set out homogenous requirements for indirect clearing arrangements relating to both over-the-counter and exchange-traded derivatives.

The MiFIR IC RTS are available here and the EMIR IC RTS are available here.