On March 1, the European Commission adopted a new set of rules requiring that certain over-the-counter credit derivatives be cleared. The rules entered into force on May 9 and will apply to CDS based on two indices: the iTraxx Europe Main and the iTraxx Europe Crossover. The mandatory clearing requirements will be phased in over three years, starting with clearing firms in February 2017 and ending with non-financial firms in May 2019. This is the second clearing obligation that has been finalized by the European authorities. The first was for OTC interest rate swaps. It entered into force on Dec. 21 and will start taking effect this year.