Instruction No. 2017-I-06 of 6 March 2017 amending Instruction No. 2014-I-04 on exemption notification forms for intragroup transactions involving OTC derivatives

PRUDENTIAL CONTROL AND RESOLUTION AUTHORITY

Instruction No. 2017-I-06 amending Instruction No. 2014-I-04 regarding the notification forms for exemption from the clearing obligation applicable to intragroup transactions involving over-the-counter derivative contracts

The Prudential Control and Resolution Authority, Having regard to Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories ("EMIR"), in particular Articles 3 and 4(2); Having regard to the Monetary and Financial Code, in particular Articles L. 612-24 and L. 612-1 II 1°; Having regard to Instruction No. 2014-I-04 of 3 March 2014 regarding the notification forms for exemption from the clearing obligation applicable to intragroup transactions involving over-the-counter derivative contracts; Having regard to the opinion of the Prudential Affairs Advisory Committee dated 6 March 2017; DECIDES

Article 1
Articles 1 and 2 of Instruction No. 2014-I-04 are replaced as follows:

"Article 1
The following terms are defined below:

• "subject entities": financial counterparties, within the meaning of point 8 of Article 2 of the EMIR Regulation, which are subject to the supervision of the Prudential Control and Resolution Authority;
• "declaring entities": those subject entities that submit the declaration using one of the forms listed in the annex to this Instruction.

Article 2
Subject entities wishing to benefit from the exemption from the clearing obligation provided for in Article 4(2) of the EMIR Regulation, in the context of intragroup transactions involving over-the-counter derivative contracts, within the meaning of Article 3 of the same Regulation, shall notify their intention to the Prudential Control and Resolution Authority.

To this end, declaring entities shall complete, as applicable:

1. the "group form" (Annex 1) when the other counterparty or counterparties is/are:

• a financial counterparty or financial counterparties, within the meaning of point 8 of Article 2 of the EMIR Regulation,
• included in the same consolidation scope in accordance with Article 3(3) of the EMIR Regulation,
• and subject to the supervision of the Prudential Control and Resolution Authority;

2. or, the "individual form" (Annex 2), when the other counterparty is not subject to the supervision of the Prudential Control and Resolution Authority;

They shall transmit one of the two forms to the Prudential Control and Resolution Authority by mail, as well as electronically in xls format.
The 30 calendar day periods provided for in points (a) and (b) of Article 4(2) of the EMIR Regulation shall run from the date of receipt of all information elements referred to by either of the forms mentioned in the preceding paragraph."

Article 2
Annex 1 to Instruction No. 2014-I-04 is replaced by the annex to this Instruction.

Article 3
This Instruction shall enter into force upon its publication.

Done in Paris, on 6 March 2017

The President of the Prudential Control Authority and Resolution, [François VILLEROY de GALHAU]

Annex Group Notification Form for Exemption from Mandatory Clearing.