FIA, EBF and ISDA seek temporary relief for obligations under the clearing regulatory technical standards for intragroup transactions

4 June 2020

FIA joined with the European Banking Federation and the International Swaps and Derivatives Association in writing to the European Commission and European Securities and Markets Authority to welcome the steps they have taken so far to ensure that EU derivatives counterparties can rely on the intragroup exemption from clearing under EMIR when dealing with non-EU affiliates. However, the associations stressed the importance of intragroup transactions both for the ability of EU financial groups to operate, compete and make capital available in non-EU jurisdictions and to manage risks on a centralised basis. Intragroup transactions are also vital to enable non-EU financial groups to provide capital needed to underpin investment within the EU-27 and to manage risk associated with this activity.

Because the expiration of temporary relief for the intragroup exemption from the clearing obligation under EMIR in December, the associations are seeking that 1) the necessary equivalence decisions be adopted as a matter of urgency in relation to all jurisdictions that have implemented clearing rules in line with the G20 commitments and 2) that the Clearing RTS should be amended to extend the current temporary derogation from clearing requirements for intragroup transactions with non-EU affiliates for a further 3 years for all other jurisdictions.

  • FIA
  • Clearing
  • Cross Border
  • EMIR
  • Europe
  • Public Policy Submissions