Statement on margining and clearing requirements under EMIR

On 23 November 2020, the European Supervisory Authorities published a Final Report on the EMIR RTS on various amendments to the bilateral margin requirements in view of the international framework as well as on novations from UK to EU counterparties. In accordance with paragraph 75 of this Final Report, the Central Bank confirms that it will apply the EU framework in a risk-based and proportionate manner with regards to the requirements related to the measures contained in the draft RTS until the amended RTS enter into force. These requirements relate to the  bilateral margin requirements and the treatment of physically settled FX forward and swap contracts, intragroup contracts, equity option contracts, implementation of the phase-in of the initial margin requirements as well as the end of the transition period with the UK and the treatment of OTC derivative contracts novated from the UK to the EU.

In addition, on 23 November 2020, the European Securities and Markets Authority published a Final Report on the EMIR RTS on the clearing obligation regarding intragroup transactions as well as on novations from UK to EU counterparties. The Central Bank confirms that, in accordance with paragraph 46 of that Final Report, it will apply the EU framework with regards to the clearing obligation and the treatment of intragroup OTC derivative contracts with a third country group entity as well as the treatment of OTC derivative contracts novated from a UK counterparty to an EU counterparty in a risk-based and proportionate manner until the amended RTS enter into force.