FCA updates process for existing intragroup exemptions from margin between UK and third country group entities

Written by Ebony Ezekwesili 

The FCA has published an instrument relating to the Over the Counter Derivatives, Central Counterparties and Trade Repositories (Amendment, etc., and Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/335) (EMIR SI).

 The FCA has also updated its webpage on EMIR to show that these changes confirm that UK firms who currently benefit from intragroup exemptions from clearing with their EU or third country group entities, and from margin exemptions with their EU group entities, may continue to benefit from those exemptions from 1 January 2021. This will be until the defined "relevant day" and in accordance with the conditions of the transitional regime for intragroup exemptions in the EMIR SI. There is also no requirement for firms to re-apply to the FCA.