On 3 July 2026, there was published a draft statutory instrument (SI) The Over-the-Counter Derivatives (Intragroup Transactions) Regulations 2026.
Background
As part of the EU exit process, the European Market Infrastructure Regulation (EMIR) became part of UK assimilated law in the UK European Market Infrastructure Regulation (UK EMIR). In addition, Part 5 of the Over-the-Counter Derivatives, Central Counterparties and Trade Repositories (Amendment, etc., and Transitional Provision) (EU Exit) Regulations 201912 (S.I. 2019/335) created the Temporary Intragroup Exemption Regime (TIGER), which allowed for the continuation of intragroup exemptions obtained before the end of the EU exit transition period and also permitted counterparties to apply for new intragroup exemptions where no equivalence determination had been made.
TIGER was originally set to expire in December 2023 but was subsequently extended by HM Treasury until the end of 2026 in the Pension Fund Clearing Obligation Exemption and Intragroup Transaction Transitional Clearing and Risk-Management Obligation Exemptions (Extension and Amendment) Regulations 2023.
Summary
This draft SI would replace the UK’s Temporary Intragroup Exemption Regime (TIGER) with a permanent framework by facilitating permanent exemptions from the clearing obligation and margin requirements for intragroup transactions between UK counterparties and overseas group entities, regardless of whether the overseas jurisdiction has been declared equivalent under Article 13 of UK EMIR. The draft SI also streamlines the process for firms to obtain and use these exemptions and includes a transitional provision to ensure that firms currently benefitting from exemptions granted under TIGER can continue to benefit from them when TIGER expires without the need to notify the Financial Conduct Authority.