Flashnews: Cleared derivatives: The new regulation finally published!


On 17 February 2021, Delegated Regulation 2021/237 was published in the Union Official Journal. Entered into force the day after its publication, this text amends the three delegated regulations on the clearing obligation (products concerned, date of entry into force...), namely 2015/2205 and 2016/1178 for interest rate derivatives and 2016/592 for credit default derivatives.

The new text incorporates the proposals made by ESMA on 23 November 2020:

  • The extension until 30 June 2022 of the temporary clearing exemption for intra-group transactions involving a third-country entity where no equivalence has been recognised between the European Union and the European Union. Note that the same deadline has been retained for the temporary exemption for the exchange of variation and initial margins (when the contract is not subject to the clearing obligation).

  • The establishment of a legislative mechanism covering possible transfers within the Union of contracts originally concluded between a party of the Union of 27 and a party of the UK; new contracts may, under certain conditions, benefit from the exemption from compensation if the original contract was not itself subject to this obligation.

  • Finally, following the withdrawal of the frontloading obligation (due to EMIR Refit), the references to the Minimum remaining maturity (MRM) are no longer useful and have therefore been removed from the three delegated texts.

Useful links:

19 February 2021: Article Uncleared derivatives: The end of a long wait
27 January 2021: Article The settlement discipline regime (CSDR) SDR 2022
10 December 2020: Article On the way to CSDR 2
07 December 2020: Article Cleared derivatives: extension of exemption and Brexit
02 December 2020: Article CSDR & BREXIT
27 November 2020: Article Uncleared derivatives: Yet another new text proposal
02 November 2020: Article Consultation on AIFMD review is launched
26 October 2020: Article The settlement disciplines regime (CSDR): SDR 2022
29 September 2020: Article EMIR Third country CCPs … and the UK
28 September 2020: Article CMU 2 new action plan
25 September 2020: Article New measures on digital finance
23 September 2020: Article AIFMD Review: the process is ongoing
03 September 2020: Article The settlement disciplines regime (CSDR): A likely short-lived date