Intragroup derivative transactions exemption procedure from the clearing and collateral exchange obligations

NBB_2017_16 – 8 May 2017 Circular – Page 1/5 boulevard de Berlaimont 14 – BE-1000 Brussels Phone +32 2 221 38 12 – fax + 32 2 221 31 04 Company number: 0203.201.340 RPM (Trade Register) Brussels www.bnb.be Circular Brussels, 8 May 2017 Reference: NBB_2017_16 Contact person:
Rita Tam
Phone +32 2 221 45 16 – fax +32 2 221 31 04 rita.tam@nbb.be Intragroup derivative transactions exemption procedure from the clearing and the collateral exchange obligations arising from Regulation (EU) No 648/2012 of 4 July 2012 on OTC derivatives central counterparties and trade repositories ('EMIR regulation') Scope This circular letter is applicable to the Belgian financial and non-financial counterparties subject to the supervision of the NBB, as defined in article 2 of the Regulation (EU) No 648/2012 of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (hereinafter referred to as the EMIR regulation) which have intragroup OTC derivative transactions. This includes Belgian credit institutions, Belgian insurance and reinsurance undertakings, Belgian stockbroking firms (sociétés de bourse), Belgian payment institutions, settlement institutions and assimilated, hereinafter referred to as “the institutions”. Summary/Purpose Following the entry into force of the delegated regulation on the clearing obligation1 and on the risk-mitigation techniques obligation for non-centrally cleared OTC derivatives2 arising from the EMIR regulation and its supplementary Delegated Regulation of 19 December 2012, this circular letter clarifies the procedure that the institutions have to follow in order to notify or apply for the exemption of their intragroup derivative transactions from the clearing and collateral exchange obligation, in accordance with the article 4.2 and 11.6-11.10 of the EMIR regulation. This circular letter also specifies, in annex, the content of the file that institutions are required to submit in this respect to the NBB. Structure

1. Main principles of the central clearing and the exchange of collateral obligations and the
   related exemptions for the intragroup derivatives transactions
2. NBB’s guidelines regarding the notification/application procedure for:
    the exemption of the intragroup derivative transactions from the clearing obligation.  the exemption of the intragroup derivative transactions from the collateral exchange obligation for non-centrally cleared derivatives. 1 Delegated Regulation (EU) 2015/2205, Delegated Regulation (EU) 2016/592 and Delegated Regulation (EU) 2016/1178. 2 Delegated Regulation (EU) 2016/2251 of 4 October 2016.