ESAs Final Report on EMIR draft RTS with regards to intragroup contracts

This final report presents new draft amending regulatory technical standards (RTS) on the risk mitigation techniques for OTC derivative contracts not cleared by a CCP (bilateral margining) that the European Supervisory Authorities (ESAs) have developed under Article 11(15) of EMIR1 . The draft RTS proposes to amend Commission Delegated Regulation (EU) No 2016/2251 setting out the detailed bilateral margin requirements, with respect to the treatment of OTC derivative contracts concluded between counterparties that are part of the same group and where one counterparty is established in a third country and the other counterparty is established in the Union.

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.