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SCOPE OF THE CSDR As a rule, the CSDR applies to the settlement of all financial instruments unless otherwise stated below: « The dematerialization requirements only apply to transferable securities (including transferable se- curities issued by third-country issuers); « The T+2 settlement requirement applies to trans- ferable securities, money-market instruments, units in collective investment undertakings and emission allowances (to which the settlement discipline measures referred to in Article 7(2) to (9) apply). THIRD-COUNTRY CSDS Third-country CSDs may provide services in the EU pursuant to Article 25(2). A CSD is required to apply for recognition under the CSDR where it intends to provide certain core CSD services and services in the EU through a branch set up in a Member State. All other services are not subject to recognition. Where required, the recognition application has to be made within 6 months of the entry into force of the relevant technical standards or the Commission equivalence decision. Before recognition, third-country CSDs providing services that require recognition under the CSDR remain subject to national regimes. The Q&A is AVAILABLE HERE. What’s next? The Q&A will be updated from time to time. Questions related to the regulatory and implement- ing technical standards will be dealt with only after the adoption of those standards by the European Commission. EMIR- Consultation of ESMA on draft standards for the clearing of foreign- exchange non deliverable forwards Background The Regulation (EU) No 648/2012 on OTC deriva- tives, central counterparties and trade repositories (“EMIR”) was published in the OJEU on 27 July 2012 and entered into force on 16 August 2012. Article 5(2) of EMIR ("Clearing obligation proce- dure") requires ESMA to develop and submit to the European Commission for endorsement draft regu-

latory technical standards (RTS) after consultation of the relevant stakeholders. ESMA already published two discussion papers in July 2013: a first consultation paper on the clear- ing obligation on interest rate classes and a second consultation paper on the clearing obligation on credit classes. ESMA also published a final report on the clearing obligation on interest rate classes. What’s in there? On 1 October 2014, ESMA published its consultation paper ESMA/2014/1185 "Clearing Obligation under EMIR (no.3)" for the clearing of foreign-exchange non-deliverable forwards OTC derivatives ("the Consultation Paper"). The Consultation Paper proposes a clearing obli- gation procedure. It further proposies criteria so as to ensure that central counterparties will be able to determine which are the classes of OTC derivatives will be subject to the clearing obligation. The Consultation Paper is AVAILABLE HERE . What’s next? The consultation period runs until 6 November 2014. In addition, ESMA will consult the ESRB and, where relevant, the competent third-country au- thorities. At the end of the consultation process, ESMA shall submit the draft regulatory technical standards to the European Commission for endorsement. EMIR- Definition by ESMA of products, counterparties and starting dates for the clearing of interest rate swaps Background The EMIR Regulation was published in the OJEU on 27 July 2012 and entered into force on 16 August 2012. Article 5(2) of EMIR ("Clearing obligation proce- dure") requires ESMA to develop and submit to the Commission for endorsement draft regulatory technical standards (RTS), after consultation of the relevant stakeholders. A discussion paper "The Clearing Obligation under EMIR" (ESMA/2013/925) was published on 12 July 2013 ". On 11 July 2013, ESMA published a first

RTS version in its consultation paper "Clearing Obli- gation under EMIR (no.2)" (ESMA/2014/800). What’s in there? On 1 October 2014, ESMA issued its final draft regu- latory technical standards (RTS) for the central clear- ing of Interest Rate Swaps (IRS) (ESMA/2014/1184). The RTS include a list of interest rate OTC deriv- atives classes subject to the clearing obligation. It includes: The RTS further include a list of criteria pertaining to the application of the clearing obligation as well as to the related date as from which the clearing obligation will take effect. The RTS for the central clearing of Interest Rate Swaps are AVAILABLE HERE. What’s next? ESMA submitted on 1 October 2014 its final draft IRS RTS to the European Commission, which has now up to three months to endorse them. The RTS will enter into force and become effective 20 days after their publication in the Official Journal of the European Union. « Basis swaps; « Fixed-to-float swaps; « Forward rate agreements; and « Overnight index swaps.

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