The European Supervisory Authorities published three joint questions and answers on bilateral margin requirements under the European Markets Infrastructure Regulation (EMIR).
These Q&As are aimed at promoting common supervisory approaches and practices in the application of EMIR. It provides responses to queries from the public, market participants and competent authorities in regard to the practical application of the regulation.
One of the areas clarified by the responses is the relief covered by a partial intragroup exemption from bilateral margin requirements. It also explains the exemption regime from bilateral margin requirements for derivatives entered into in relation to covered bonds.
Finally, the answers also explain the procedure to grant intragroup exemptions from bilateral margin requirements between a financial counterparty and a non-financial counterparty that are based in different Member States, it said.
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