On 31 August, FIA and ISDA submitted a joint response to ESMA’s consultation paper on Clearing Obligation under EMIR (no.6), in particular relating to the treatment of intragroup transactions. FIA and ISDA members strongly support ESMA’s move to extend the derogation from the clearing obligation for intragroup transactions concerning third-country entities based in jurisdictions which do not benefit from an equivalence determination under article 13(2) of EMIR. Were the derogation not extended, particularly in the time available before the expiry of the current exemption, the impact on the ability of European derivative market participants to operate on a cross-border basis would be severe. The full response can be found here.
