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 The recommendations to set up a mandatory clearing regime are in relation to:  

  • Determination of whether a mandatory clearing obligation should apply to a product or set of products;
  • Consideration of potential exemptions to the mandatory clearing obligation;
  • Establishment of appropriate communication among authorities and with the public;
  • Consideration of relevant cross-border issues in the application of a mandatory clearing obligation; and
  • Monitoring and reviewing on an ongoing basis of the overall process and application of the mandatory clearing obligation.

This report outlines two general approaches to the determination that a product or set of products should be subject to a mandatory clearing obligation:  

  • The bottom-up approach considers products that a central counterparty (CCP) proposes to or is authorised to clear; and
  • The top-down approach considers products that should be assessed for a mandatory clearing obligation, but where there may be no CCP clearing or seeking to clear that product.

This report recommends that authorities implementing a mandatory clearing regime consider using these bottom-up and top-down approaches in their decision-making processes.