ESAs publish RTS on bilateral contracts

The European Security Authorities (ESAs) published the draft regulatory technical standards (RTS) detailing risk mitigation techniques for OTC derivative contracts not cleared on a CCP under Article 11 of EMIR.


Article 11 requires that counterparties entering into an uncleared derivative contract should ensure that appropriate procedures and processes are in place to measure, monitor and mitigate operational risk and counterparty credit risk including the exchange of variation and initial margin.