Some good news amongst the chaos - a year's grace for EU members clearing OTC on LCH, LME, ICE and other London CCPs. 

One would hope that during that year, the UK will be granted equivalence, and the individual CCPs recognised by ESMA in the same way as have CCPs based in US, Singapore, Hong Kong and other jurisdictions. At least for LCH however, that will be subject to the final position under EMIR REFIT on the location policy.

In the meantime, that takes the pressure off Irish and Lux AIFs and UCITS somewhat, albeit that news of the relief comes too late for some - we understand that volumes of EUR IRS at Eurex have increased sharply over the course of the year. 

As such managers should continue to monitor the situation and periodically consider where they should clear, and what their back-ups should be.