The Consultation Paper examines the state of the transition away from EONIA and LIBOR, which will cease to exist, and onto alternative risk-free rates, such as €STR, SONIA and SOFR, in the OTC interest rate derivatives market.
The overall aim of this consultation is to amend the scope of both the CO and the DTO to accompany the benchmark transition for OTC derivatives.
ESMA is seeking stakeholder feedback on the proposed changes to the scope of these obligations and will use the input to assess what changes to the RTS should be introduced to accompany the benchmarks transition.
ESMA expects to submit the final report to the Commission in autumn 2021 and aims to ensure that the scope of derivatives classes subject to the CO and the DTO reflect the transition to the new alternative rates at the beginning of 2022.
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