On 15 December 2016 the European Commission published in the Official Journal a new EU Commission Delegated Regulation on risk mitigation techniques for derivative contracts not cleared through a central counterparty. The delegated regulation set out the European Market Infrastructure Regulation (EMIR) requirements for firms to exchange margin in relation to non-centrally cleared OTC derivatives. The rules will enter into force on 4 January 2017 and confirm the following implementation dates for the exchange of variation margin:

• 4 February 2017 - for firms with a group aggregate average notional amount of non-centrally cleared derivatives above EUR 3 trillion
• 1 March 2017 - for all other firms in scope

Implementation for the exchange of initial margin will be phased-in commencing on 4 February 2017 through to 1 September 2020. Initial margin assets will need to be held as specified in the Delegated Regulation. If members have any questions, please contact Adam Jacobs-Dean, Oliver Robinson or Adele Rentsch.