Delaying Clearing Obligations for Derivative Contracts

Summary

The European Parliament supports an extension of exemptions for certain derivative contracts to help EU companies move their business from the UK without facing new, unexpected regulatory costs.
9 09.02.2021
Other
finance
economy
business and competition
financial institutions and credit

Key points

  • The European Parliament has decided not to object to the Commission's regulation regarding clearing obligations for specific contracts.
  • The measure provides relief for EU companies moving their business (novating contracts) from the United Kingdom to EU Member States.
  • This relief prevents new contracts from being subject to unexpected clearing obligations or collateral requirements that were not in the original deals.
  • The current exemptions are extended for a fixed period of 12 months from when the regulation enters into force.
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