United Kingdom (and EU regulation)

Delegated Regulations under EMIR preparing for no-deal Brexit published in OJ

On 13 March 2019, two Commission Delegated Regulations were published in the Official Journal of the EU (OJ):

Commission Delegated Regulation (EU) 2019/396 of 19 December 2018 amending Delegated Regulation (EU) 2015/2205, Delegated Regulation (EU) 2016/592 and Delegated Regulation (EU) 2016/1178 supplementing EMIR as regards the date at which the clearing obligation takes effect for certain types of contracts; and
Commission Delegated Regulation (EU) 2019/397 of 19 December 2018 amending Delegated Regulation (EU) 2016/2251 supplementing EMIR as regards the date until which counterparties may continue to apply their risk-management procedures for certain over-the-counter derivative contracts not cleared by a central counterparty.

In order to ensure the smooth functioning of the market and a level playing field between counterparties established in the EU, the Delegated Regulations provide that counterparties should be able to replace counterparties established in the UK with counterparties in an EU27 Member State without: (a) triggering the clearing obligation; or (b) being required to exchange collateral in respect of those novated contracts.

Both Delegated Regulations entered into force on 14 March 2019 (that is, the day after their publication in the OJ).