The draft RTS propose extending the current temporary exemptions regime for intragroup contracts by three years. This will accommodate the ongoing assessment of third-country equivalence and allow for a review of the intragroup exemptions framework under the EMIR review.
ESMA also published a final report with a new draft RTS proposing to amend accordingly the three Commission Delegated Regulations on the clearing obligation under EMIR.
The bilateral margin Delegated Regulation, and the clearing obligation Delegated Regulations, originally introduced temporary exemptions for intragroup contracts with third-country group entities, to facilitate centralised risk management-procedures for groups. These exemptions provided a temporary solution in parallel to the assessment period for the relevant equivalence decisions under EMIR’s permanent exemption framework.
The ESAs are of the view that a review of the EMIR framework for intragroup exemptions for contracts with third countries, and its interaction with the Capital Requirements Regulation (CRR), would be desirable, and the scheduled upcoming review of EMIR offers this opportunity. As the current temporary exemptions regime expires on 30 June 2022, and in order to avoid any negative consequences, the draft RTS propose extending the temporary regime by three years.
The ESAs have now submitted these draft RTS to the European Commission for endorsement. Following this, they are then subject to non-objection by the European Parliament and the Council.
In view of the time for the approval process, the ESAs have published a statement to provide clarification for this period.