ESAs publish Joint Q&As on Bilateral Margining

The European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) published today three Joint Questions and Answers (Q&A) on RTS 2016/2251 on bilateral margin requirements under the European Markets Infrastructure Regulation (EMIR).

The purpose of the Joint Q&As on bilateral margin requirements is to promote common supervisory approaches and practices in the application of EMIR. It provides responses to questions posed by the public, market participants and competent authorities in relation to the practical application of the Regulation.

The Joint Q&As on Bilateral Margining clarify different aspects regarding the bilateral margin regime under EMIR:

the relief covered by a partial intragroup exemption from bilateral margin requirements;
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; and
the exemption regime from bilateral margin requirements for derivatives entered into in relation to covered bonds.