On 1 February 2023, the European Securities and Markets Authority (ESMA) published a final report on the clearing and derivative trading obligations in view of the 2022 status of the benchmark transition.

The report sets out proposed draft regulatory technical standards (RTS) amending the scope of the clearing (CO) and derivative trading (DTO) obligations for over-the-counter interest rate derivatives denominated in EUR, GBP, JPY and USD. The draft RTS relate to the benchmark transition away from EONIA and LIBOR and onto new Risk-Free Rates.

For the CO the amendments include the introduction of the TONA OIS class and the extension of the SOFR OIS class (up to 50 years). For the DTO, the amendments introduce the €STR OIS class. For the RTS amending the scope of the DTO, ESMA proposes that the date of application should coincide with the one of the MiFIR review so as to address some of the concerns expressed by respondents in the earlier consultation.

The draft RTS have been submitted to the European Commission for endorsement.