Information on intragroup exemption from the clearing obligation

The counterparties subject to the clearing obligation are divided in the following categories [1]:

 

a) Category 1, comprising counterparties which, on the date of entry into force of this Regulation, are clearing members, within the meaning of Article 2(14) of Regulation (EU) No 648/2012, for at least one of the classes of OTC derivatives set out in the Annex to this Regulation, of at least one of the CCPs authorised or recognised before that date to clear at least one of those classes;
b) Category 2, comprising counterparties not belonging to Category 1 which belong to a group whose aggregate month-end average of outstanding gross notional amount of non-centrally cleared derivatives for January, February and March 2016 is above EUR 8 billion and which are any of the following: (i) financial counterparties; (ii) alternative investment funds as defined in Article 4(1)(a) of Directive 2011/61/EU of the European Parliament and of the Council (2) that are non-financial counterparties;
c) Category 3, comprising counterparties not belonging to Category 1 or Category 2 which are any of the following: (i) financial counterparties; (ii) alternative investment funds as defined in Article 4(1)(a) of Directive 2011/61/EU that are non-financial counterparties;
d) Category 4, comprising non-financial counterparties that do not belong to Category 1, Category 2 or Category 3.

 
Commission Delegated Regulation (EU) 2015/2205 with regard to regulatory technical standards on the clearing obligation entered into force on 21 December 2015 and triggered the clearing obligation for basis swaps classes, fixed-to-float interest rate swaps classes denominated in EUR, GBP, JPY and USD; forward rate agreement classes and overnight index swap classes denominated in EUR, GBP and USD.

 
In respect of contracts pertaining to these class of OTC derivatives, the clearing obligation shall take effect: 

 
(1) for counterparties in category 1, on 21 June 2016; 
(2) for counterparties in category 2, on 21 December 2016; 
(3) for counterparties in category 3, on 21 June 2017; 
(4) for counterparties in category 4, on 21 December 2018. 

  
Commission Delegated Regulation (EU) 2016/592 with regard to regulatory technical standards on the clearing obligation entered into force on 9 May 2016 and triggered the clearing obligation for Index CDS (iTraxx Europe Main and iTraxx Europe Crossover).

 
In respect of contracts pertaining to these class of OTC derivatives, the clearing obligation shall take effect:  

         
(1) for counterparties in category 1, on 9 February 2017;
(2) for counterparties in category 2, on 9 August 2017;
(3) for counterparties in category 3, on 9 February 2018;
(4) for counterparties in category 4, on 9 May 2019. 

 

Commission Delegated Regulation (EU) 2016/1178  with regard to regulatory technical standards on the clearing obligation entered into force on 9 August 2016 and triggered the clearing obligation for fixed-to-float interest rate swaps classes and forward rate agreement classes denominated in NOK, PLN and SEK.
In respect of contracts pertaining to these class of OTC derivatives, the clearing obligation shall take effect: 

  
(1) for counterparties in category 1, on 9 February 2017;
(2) for counterparties in category 2, on 9 August 2017;
(3) for counterparties in category 3, on 9 February 2018;
(4) for counterparties in category 4, on 9 August 2019.

 
As defined in Article 4(2) of EMIR, financial counterparties established in Luxembourg and where the CSSF is the competent authority, and non-financial counterparties established in Luxembourg can make use of the exemptions from the clearing obligation for intragroup transactions in OTC derivatives contracts. They have to apply [2]/notify [3] to the CSSF not less than 30 calendar days before the intended use of the exemption.  

  

Intragroup transactions with third-country counterparties

    

As long as no implementing act has been adopted pursuant to Article 13(2) of EMIR, intragroup transactions in OTC derivatives between counterparties in category 1, 2 and 3 and third-country counterparties enjoy a deferred application of the clearing obligation as foreseen in Article 3(2) of Commission Delegated Regulation (EU) 2015/2205, Commission Delegated Regulation (EU) 2016/592, Commission Delegated Regulation (EU) 2016/1178 (hereinafter ‘RTSs’). However, the counterparty established in Luxembourg has to notify to the CSSF that the conditions of derogation of Article 3(2)(a)(b)(c)(d) of the above mentioned RTSs are met.

  

Intragroup transactions with counterparties in category 4

 

The date of the clearing obligation for transactions in basis swaps classes, fixed-to-float interest rate swaps classes denominated in EUR, GBP, JPY and USD, forward rate agreement classes and overnight index swap classes denominated in EUR, GBP and USD concluded between a counterparty in one of the categories with a counterparty in category 4 is 21 December 2018.

 
For transactions in Index CDS concluded between a counterparty in one of the categories with a counterparty in category 4, the date of the clearing obligation is 9 May 2019.

  
For transactions in fixed-to-float interest rate swaps classes and forward rate agreement classes denominated in NOK, PLN and SEK concluded between a counterparty in one of the categories with a counterparty in category 4, the date of the clearing obligation is 9 August 2019.

 

This phase-in period also applies to transactions concluded between a financial counterparty and a non-financial counterparty. Therefore, the concerned counterparties have sufficient time to make their notification/application for intragroup exemption from the clearing obligation.
 

How to make a notification/application?

 

Notifications/applications for intragroup exemptions can be submitted to the CSSF by filling in the interactive form available under https://emirexemptions.apps.cssf.lu/ .

 

After submitting the interactive form, this document must be printed under a pdf format, signed and sent to the CSSF to the e-mail address mentioned in Chapter I of the interactive form.

 

Applicants can preview this form in order to be able to gather all required information before submitting their notification/application via the interactive form. It should be noted that this form is for information purposes only and cannot be used as a signed version of the notification/application to be submitted to the CSSF.

 

Template for intragroup exemption from the clearing obligation (for information only) 

 

Changes to the information provided in the interactive form

 

If changes to the information provided in the form occur after exemption from the clearing obligation was granted, the CSSF must be informed by written notice to be sent to the following e-mail addresses:

For financial counterparties: emir_fcp_ige@cssf.lu

 

For non-financial counterparties: emir_nfcp@cssf.lu by mentioning in the subject line of your e-mail: EMIR-IG exemption. 

 

[1] Please refer to Article 2(1) of the RTS defining the counterparties belonging to the different categories.

 

[2] Application in accordance with Article 4(2)(b) of EMIR.

 

[3] Notification in accordance with Article 4(2)(a) of EMIR.     



Intragroup exemptions

Notifications/applications for intragroup exemptions from the clearing obligation via the interactive form