FCA’s latest EMIR update – March 2017

The FCA has released its latest EMIR update which covers:

Applications for Intragroup exemptions from margin – submission deadline

Under EMIR, there is an exemption from the requirement to exchange margin for intragroup transactions provided certain criteria have been met.  For intragroup transactions between a UK entity and an entity in another country, firms must seek approval from the FCA before using the exemption.  The RTS on risk mitigation techniques for OTC derivative contracts not cleared by a CPP under Article 11 of EMIR provide a six month implementation delay for intragroup transactions (until 4 July this year).  The FCA has three months to reach a decision after a complete application has been made.  Firms wishing to apply for an exemption will need to have provided the application to the FCA by 4 April to receive a decision before the transitional period has expired.

European Commission endorses clearing delay for Category 3 firms under EMIR

The EC recently endorsed RTS that postpones the phase-in date for central clearing of OTC derivatives applicable to Category 3 firms under EMIR.

ESMA establishes MoU on CCPs with non-EU jurisdictions

ESMA has established five Memoranda of Understanding (MoUs) under EMIR to establish cooperation arrangements regarding CCPs in Brazil, Japan, India, the Dubai International Financial Centre or the UAE, and which have applied for EU recognition under EMIR.