{
  "url": "https://openlegislation.uk/draft-over-the-counter-derivatives-intragroup-transactions-regulations-2026/note",
  "json_url": "https://openlegislation.uk/draft-over-the-counter-derivatives-intragroup-transactions-regulations-2026/note.json",
  "legislation": "ukdsi/2026/9780348285260",
  "legislation_title": "The Over the Counter Derivatives (Intragroup Transactions) Regulations 2026",
  "legislation_url": "https://openlegislation.uk/draft-over-the-counter-derivatives-intragroup-transactions-regulations-2026",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Regulations)\nRegulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (EUR 2012/648) (“the EMIR Regulation”) sets out obligations for over-the-counter (OTC) derivatives contracts to be cleared through central counterparties, establishes risk management requirements for uncleared derivatives contracts and provides for exemptions in relation to certain intragroup transactions. Further temporary provisions were made in relation to these exemptions in Part 5 of the Over the Counter Derivatives, Central Counterparties and Trade Repositories (Amendment, etc., and Transitional Provision) (EU Exit) Regulations 2019 (S.I. 2019/335) (“the 2019 Regulations“).\nThe EMIR Regulation is revoked by section 1(1) of, and Schedule 1 to, the Financial Services and Markets Act 2023 (2023 c. 29), but that revocation has not yet been brought into force and the EMIR Regulation therefore continues to have effect. These Regulations use powers in sections 3 and 84(2) of the Financial Services and Markets Act 2023 to amend the provisions setting out the intragroup exemptions from the clearing and risk management obligations in the EMIR Regulation and to replace the temporary provisions made in relation to these exemptions in the 2019 Regulations. It is proposed that the revocation of provisions of the EMIR Regulation will be brought into force alongside regulations restating elements of the revoked legislation to be made under section 4 of that Act (power to restate and modify saved legislation).\nRegulation 3 amends the definition of an intragroup transaction in Article 3 of the EMIR Regulation so that any transaction between entities within the same consolidated group qualifies as intragroup regardless of the jurisdiction in which those entities are established. It also simplifies the references used to determine whether entities form part of a consolidated group, including by replacing the previous framework for recognising third country accounting standards with a reference to the Commission Decision of 12 December 2008 on the use by third countries’ issuers of securities of certain third country’s national accounting standards and International Financial Reporting Standards to prepare their consolidated financial statements (2008/961/EC).\nRegulation 4 amends the processes applicable to the intragroup exemptions in Article 4 of the EMIR Regulation and provides for a notification process for transactions between a UK entity and an overseas entity in the same group or between two overseas entities in the same group, subject to a 30-day period within which the FCA is able to object.\nRegulation 5 amends the processes applicable to the intragroup exemptions in Article 11 of the EMIR Regulation and provides for a notification process for transactions between a UK entity and an overseas entity in the same group or between two overseas entities in the same group, subject to a 30-day period within which the FCA is able to object, whilst removing the requirement for public disclosure of margin exemptions.\nRegulation 6 makes consequential amendments to the Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) Regulations 2013 (S.I. 2013/504).\nRegulation 7 makes transitional provision in respect of the current temporary intragroup exemptions in Part 5 of the 2019 Regulations, so that exemptions which applied immediately before the coming into force of these Regulations continue to have effect under the new regime, without requiring counterparties to re-apply or re-notify.\nA full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen. A de minimis impact assessment is available from HM Treasury, 1 Horse Guards Road, London, SW1A 2HQ and is published with the Explanatory Memorandum alongside this instrument at www.legislation.gov.uk.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukdsi/2026/9780348285260/note",
    "retrieved_at": "2026-10-30T14:37:04.740107+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}