ESMA have published their final report in OTC report on the matter of Bilateral Margin and Novations from UK to EU counterparties post the UK’s withdrawal from the EU. This Final Report is an amendment to the Final Report of May 2020
The report is on EMIR RTS around various amendments to the bilateral margin requirements in view of the international framework as well as on novations from UK to EU counterparties
Previously, the draft RTS related to two main topics
- The introduction of a number of amendments to the Commission Delegated Regulation on bilateral margining that take into account the international framework agreed by the Basel Committee on Banking Supervision (BCBS) and the International Organisation of Securities Commissions (IOSCO) and the progress made in its implementation.
- The treatment of OTC derivative contracts novated from a counterparty established in the United Kingdom (UK) to a counterparty established in a Member State as a consequence of the withdrawal of the UK from the EU1 .
This Final Report from ESMA is in response to these.
See full ESMA report here