The latest version of the European Market Infrastructure Regulation gave market participants more leeway in clearing intragroup transactions. The version noted that intragroup transactions will not be subject to clearing requirements if the counterparties have appropriate risk management procedures in place and if there is no current or foreseen practical or legal impediment to the prompt transfer of own funds or repayment of liabilities between counterparties. [In the latest consultation, the European Securities and Markets Authority published draft technical standards in relation to the details of intragroup OTC derivative transactions to be included in notifications to competent authorities. Details in relation to the criteria that will assess the applicability of the exemption will be proposed in a separate consultation paper later this year.]
