Regulation (EU) 2019/834, of European Parliament and of the Council, which amends European Market Infrastructure Regulation, or EMIR, (Regulation No 648/2012) has been published in the Official Journal of the European Union. Regulation (EU) 2019/834 amends EMIR regarding the clearing obligation, the suspension of the clearing obligation, the reporting requirements, the risk-mitigation techniques for over-the-counter (OTC) derivative contracts not cleared by a central counterparty (CCP), the registration and supervision of trade repositories, and the requirements for trade repositories. Regulation (EU) 2019/834 will enter into force 20 days after its publication in the Official Journal of the European Union.
The regulation introduces a new category of "small financial counterparties," which will be exempted from the obligation to clear their transactions through a CCP, while remaining subject to risk-mitigation obligations. Smaller non-financial counterparties will also have reduced clearing obligations. In addition, the amendment extends by another two years (further extendable twice by an additional year) the temporary exemption from the clearing obligation of pension scheme arrangements. The updated rules also streamline the existing reporting obligations to improve the quality of the data reported, make the supervision more effective, and increase access to clearing by removing the existing unnecessary obstacles. All of this translates into simplified rules for non-financial counterparties, small financial counterparties, and pension funds using financial derivative products.
Regulation (EU) 2019/834 shall apply from the date of entry into force, except for the following:
- Provisions set out in points (10) and (11) of Article 1 of Regulation (EU) 2019/834, as regards Articles 38(6) and (7) and 39(11) of EMIR, shall apply from December 18, 2019.
- Provisions set out in point (7)(b) of Article 1 of Regulation (EU) 2019/834, as regards Article 9(1a) to (1d) of EMIR, shall apply from June 18, 2020.
- Provisions set out in points (2)(b) and (20) of Article 1 of Regulation (EU) 2019/834, as regards Articles 4(3a) and 78(9) and (10) of EMIR, shall apply from June 18, 2021.
Effective Date: June 17, 2019
Keywords: Europe, EU, Banking, Securities, Pension Funds, OTC Derivatives, EMIR, Reporting, CCPs, Clearing Obligation, Capital Markets Union, European Council, European Parliament
Previous ArticleESRB Updates List of National Macro-Prudential Measures in EU
OSFI has set out the near-term priorities for federally regulated financial institutions and federally regulated private pension plans for the coming months until March 31, 2022.
Under the Italian G20 Presidency, BIS Innovation Hub and the Italian central bank BDI launched the second edition of the G20 TechSprint on the lookout for innovative solutions to resolve operational problems in green and sustainable finance.
EBA proposed the regulatory technical standards on a central database on anti-money laundering and countering the financing of terrorism (AML/CFT) in EU.
ECB published its response to the targeted EC consultation on the review of the bank crisis management and deposit insurance framework in EU.
ACPR published Version 1.0.0 of the RUBA taxonomy, which will come into force from the decree of January 31, 2022.
BCBS, CPMI, and IOSCO (the Committees) are inviting entities that participate in market infrastructures and securities markets through an intermediary as well as non-bank intermediaries to complete voluntary surveys on the use of margin calls.
ECB published Decision 2021/752 to amend Decision 2019/1311 on the third series of targeted longer-term refinancing operations or TLTRO III.
The Central Bank of Ireland published Version 2.7 of the draft credit data template and rules for monthly AnaCredit reporting by banks.
OSFI proposed revisions to the Basel Capital Adequacy Reporting (BCAR) and leverage requirements returns for the 2023 reporting, with the comment period ending on July 09, 2021.
EBA published a discussion paper on review of the standardized nonperforming loans (NPL) transaction data templates, along with the proposed revised NPL data templates.