On October 3, the European Securities and Markets Authority (ESMA) published a Consultation Paper (the Paper) on Draft Technical Advice on the provision of clearing services on a fair, reasonable, non-discriminatory and transparent (FRANDT) basis pursuant to the European Market Infrastructure Regulation (EMIR).

Following the effectiveness of Regulation 2019/834 amending EMIR (EMIR Refit) on June 17, ESMA has been tasked with ensuring that the EMIR objectives are reached in a proportionate, efficient and effective manner. This Paper forms part of their “targeted action” on access to central clearing.

The focus of the Paper is the requirements on clearing members and clients to offer and provide clearing services on a FRANDT basis. To this end, the Paper suggests a number of obligations on firms that provide clearing services, including public disclosures, harmonization of certain elements of client agreements and ensuring that similarly situated clients receive services on similar commercial terms.

The deadline for comments on the Paper is December 2.

The Paper is available here.