The European Commission proposed in a delegated regulation on Thursday 6 May the extension for another year of the exemption from the clearing obligation for Pension Scheme Arrangements meeting certain criteria, an exemption provided for in the EMIR regulation on OTC derivatives, central counterparties and trade repositories.
A transition period was originally set to allow CCPs, Pension Scheme Arrangements and clearing members more time to develop viable technical solutions that would allow Pension Scheme Arrangements to meet cash variation margin calls from CCPs.
However, this temporary derogation has been extended over the years as no viable technical solution has emerged. On the same day, the Commission published a report on the progress made so far.
Following the 2019 review of the EMIR regulation, the derogation has been extended until 18 June 2021. The Commission is now proposing to extend it until 18 June 2022, while making it clear that “the ultimate aim of the Regulation remains central compensation for Pension Scheme Arrangements”.
The delegated regulation will enter into force if the European Parliament and the Council of the EU do not express objections. The Commission stresses the importance of its early entry into force so that the current transition period is extended before it expires.
See the Delegated Regulation: https://bit.ly/3b9w4wP
See the report: https://bit.ly/3trqbkX (Original version in French by Marion Fontana)