Transitional Dates Under CRR And EMIR Extended

On 4 June 2014, certain transitional dates under the Capital Requirements Regulation (the "CRR") and the European Market Infrastructure Regulation ("EMIR") were extended from 15 June 2014 to 15 December 2014 by secondary legislation. The first extension ensures that a financial institution established in the EU which is required to clear transactions through a central counterparty ("CCP") will be able to calculate its own fund requirements as if the CCP had already been authorized or recognized under EMIR and considered to be a qualifying CCP under the CRR. Without this extension, institutions would be subject to higher capital requirements for their exposures to CCPs which are not yet authorized or recognized. The second extension delays the obligation of certain CCPs to report the total amount of initial margin received from clearing members. The legislation came into force on 5 June 2014.