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EMIR: Two Delegated Regulations amending RTS

26/05/2020

On 27 March 2020, Commission Delegated Regulation (EU) 2020/448 was published in the OJ.

It amends the EMIR RTS in Commission Delegated Regulation (EU) 2016/2251, as regard the treatment of OTC derivatives in connection with certain simple, transparent and standardised securitisations (STSs) for hedging purposes. It provides that securitisation special purpose entities (SSPE), for OTC derivatives in connection with securitisations that meet the requirements to be classified as STSs, will be exempted from posting and collecting initial margins and from posting variation margins. 

Commission Delegated Regulation (EU) 2020/447 was also published, supplementing EMIR with regards to RTS on criteria for establishing the arrangement to adequately mitigate counterparty credit risk associated with covered bonds and securitisations, and amending Delegated Regulations (EU) 2015/2205 and (EU) 2016/1178. Amongst other things it sets out the clearing exemption conditions for OTC derivative contracts that are concluded by covered bond entities in connection with a covered bond and by a SSPE in connection with a securitisation.

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