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 five key things that
Irish funds and their UCITS ManCos and AIFMs
("Managers") need to know about EMIR
Refit.
1. Small financial counterparty ("SFC") clearing
exemption
EMIR Refit introduces a new SFC category, which is a financial
counterparty whose positions in OTC derivatives fall below the
relevant clearing thresholds under EMIR. SFCs are not subject
to the mandatory clearing obligation under EMIR. When
determining whether the clearing thresholds have been exceeded, a
financial counterparty 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
