EMIR – Intra-group transactions

• the clearing obligation (Article 4(2) of EMIR) – the obligation to clear OTC derivatives through a central counterparty (CCP).
  
  
• margin requirements (Article 11 of EMIR) – the obligation to exchange collateral (initial and variation margin) for non-centrally cleared derivatives. Intra-group transactions can be exempted from the collateral exchange obligation in a number of (possible) situations.
  
  
• The reporting obligation (Article 9 of EMIR) – the obligation to report on the details of any derivatives contracts entered into, as well as any modification or termination of such contracts. 

Clearing obligation

Under specified circumstances, OTC derivative contracts that can be qualified as intra-group transactions are not subject to the clearing obligation (Article 4(2) of EMIR). Article 3 of EMIR defines intra-group transactions in the context of EMIR and specifies when such transactions are exempted from the clearing obligation. The exemption from the clearing obligation for intra-group transactions only applies if the competent authorities have been notified accordingly in writing and in good time, as set out in Article 4(2) of EMIR.

Margin obligations

Intra-group transactions can be exempted from the collateral exchange obligation in three (possible) situations.

1. Intra-group transactions in the same EEA country, i.e. the Netherlands.
2. Intra-group transactions in which one of the counterparties is established in the Netherlands and the other is established in another EEA country. 
3. Intra-group transactions in which one of the counterparties is established in the Netherlands and the other is established in a non-EEA country in accordance with Article 3(2)(d) of EMIR. 

Reporting requirement

Intra-group transactions for institutions in accordance with Article 9(1) and Article 9(2) of EMIR are exempted from the reporting obligation. This exemption applies when both counterparties are included in the same consolidation on a full basis and are subject to appropriate centralised risk assessment, measurement and control procedures.