April 29, 2019

EC published the Delegated Regulation (EU) 2019/667 extending the dates of deferred application of the clearing obligation for certain over-the-counter (OTC) derivative contracts. Regulation 2019/667 amends the Delegated Regulations 2015/2205, 2016/592, and 2016/1178. Regulation 2019/667 shall enter into force on the day following that of its publication in the Official Journal of the European Union.

Regulations 2015/2205, 2016/592, and 2016/1178 specify, among others, the effective dates of the clearing obligation for contracts pertaining to the classes of OTC derivatives set out in the Annexes to the Regulations. These Regulations laid down deferred dates of application of the clearing obligation for OTC derivative contracts concluded between the counterparties that are part of the same group and where one counterparty is established in a third country and the other counterparty is established in the Union. As stated in the relevant recitals of these Regulations, those deferred dates were necessary to ensure that such OTC derivative contracts were not subject to the clearing obligation before the adoption of an implementing act pursuant to Article 13(2) of European Market Infrastructure Regulation, or EMIR (EU No 648/2012).

To date, no implementing act pursuant to Article 13(2) of EMIR has been adopted in relation to the clearing obligation. Therefore, the application of the clearing obligation to OTC derivative contracts should be further deferred for a defined period of time or until the adoption of those implementing acts. Regulations 2015/2205, 2016/592, and 2016/1178, therefore, have been amended accordingly. The first subparagraph in Article 3(2) of Regulations 2015/2205, 2016/592, and (2016/1178 has been replaced. In Regulations (EU) 2015/2205, (EU) 2016/592, and (EU) 2016/1178, the initial deferred dates of application were aligned with the date of application of the clearing obligation for counterparties in Category 4. Because the deferred dates of application should be further extended, that extension should also apply to Category 4 entities.

 

Related Link: Regulation (EU) 2019/667

Effective Date: April 30, 2019

Keywords: Europe, EU, Banking, Securities, OTC Derivatives, EMIR, Clearing Obligation, Deferred Dates, Regulation 2019/667, EC

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