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
Previous ArticleBoE Governor Outlines Work on Using Technology for Bank Supervision
EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.
EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).
NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.
MAS published the guidelines on individual accountability and conduct at financial institutions.
APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.
SRB published two articles, with one article discussing the framework in place to safeguard financial stability amid crisis and the other article outlining the path to a harmonized and predictable liquidation regime.
FSB hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.
ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.
OSFI published the key findings of a study on third-party risk management.
FSB is extending the implementation timeline, by one year, for the minimum haircut standards for non-centrally cleared securities financing transactions or SFTs.