Publication within the meaning of article 20 of Commission Delegated Regulation (EU) No 149/2013 of 19 December 2012 supplementing Regulation (EU) No 648/2012 of the European Parliament and of the Council with regard to regulatory technical standards on indirect clearing arrangements, the clearing obligation, the public register, access to a trading venue, non-financial counterparties, and risk mitigation techniques for OTC derivatives contracts not cleared by a CCP (CDR 149/2013)
Pursuant to Regulation (EU) No 648/2012 (EMIR), article 11 (3), counterparties must have risk management procedures that require the timely, accurate and appropriately segregated exchange of collateral with respect to non-centrally cleared OTC derivative contracts. Article 11(5) to (10) EMIR provides for various exemptions to this requirement for intragroup transactions.
Within this framework, the Commission de Surveillance du Secteur Financier (CSSF) has granted ICBC (Europe) S.A. a deferred exemption from the initial and variation margin requirements in accordance with article 11 (8) EMIR.
The table below contains the relevant information on the exemption and concerned counterparties, which must be publicly disclosed pursuant to article 20 of CDR 149/2013:
||Relationship between the counterparties
Notional aggregate amount of the OTC derivative contracts for which the intragroup exemption applies
|ICBC (Europe) S.A.
||Affiliates [ICBC (Europe) S.A. being a subsidiary and ICBC Luxembourg Branch being a branch of ICBC Limited in China]
||Industrial and Commercial Bank of China Ltd., Luxembourg Branch
||Deferred Full exemption*
||annual volume for currency transactions of 30 billion EUR and for interest rate transactions of 10 billion EUR
||interest rate, currency
|* Pending EU Commission implementing act recognizing the equivalence of China under Article 13(2) of EMIR