On 11 July 2022, the European Securities and Markets Authority (ESMA) published a consultation paper on the clearing obligation (CO) and derivative trading obligation (DTO) in view of the 2022 status of the benchmark transition.

The consultation paper contains draft regulatory technical standards (RTS) that complement an earlier set of RTS that removed EONIA and LIBOR classes while introducing overnight index swaps (OIS) classes referencing Euro Short-Term Rates (€STR (EUR)) and Secured Overnight Financing Rate (SOFR) for USD to the CO as well as expanding the maturities in scope of the OIS class referencing Sterling Overnight Financing Rate (SONIA) for GBP.

For the CO the draft RTS proposes to introduce the OIS class referencing the Tokyo Overnight Average Rate to expand the maturities in scope of the CO for the OIS class referencing SOFR (USD), and for the DTO introducing certain classes of OIS referencing €STR (EUR).

The deadline for comments on the consultation paper is 30 September 2022.

The ESMA will then review all the responses to the consultation submitted by the deadline in order to finalise the draft RTS by the end of the year. The draft RTS will then be submitted to the European Commission for endorsement in the form of draft Commission Delegated Regulations.