Shifting Obligations; Limited Time
EMIR Refit will enter into force on 17 June
2019 and will amend the existing EMIR legislation applicable to
European counterparties trading derivatives, with the express aim
of simplifying the EMIR regime to make the compliance burden more
proportionate. We set out below the three key things that
Irish special purpose vehicles ("SPVs") need to know
about EMIR Refit.
1. Imminent requirement to calculate aggregate notional
against the clearing thresholds
EMIR Refit introduces a new method for non-financial
counterparties ("NFCs") such as SPVs to
calculate their aggregate gross notional of OTC uncleared
derivatives positions to compare against the clearing
thresholds. When determining whether the clearing thresholds
have been exceeded, an NFC must calculate its aggregate month-end
average notional position in OTC derivatives for the previous 12
months. This is understood to mean the sum of all positions
(for the relevant
