TITLE IXTRANSITIONAL AND FINAL PROVISIONS
F1Article 84aRegulations
(1.
Any power to make regulations conferred on the Treasury by this Regulation is exercisable by statutory instrument.
(2.
Any power to make regulations under this Regulation includes power to make:
(a)
different provision for different purposes;
(b)
consequential, supplementary, incidental, transitional, transitory or saving provision.
(3.
A statutory instrument containing regulations under this Regulation is subject to annulment in pursuance of a resolution of either House of Parliament.
F2Article 85Reports and review
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F2Article 86Committee procedure
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F2Article 87Amendment to Directive 98/26/EC
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Article 88Websites
1.
F3The Bank of England and the FCA must each, where appropriate, maintain a website which provides details of the following:
(a)
contracts eligible for the clearing obligation under Article 5;
(b)
penalties imposed for breaches of Articles 4, 5 and 7 to 11;
(c)
(d)
penalties imposed for breaches of Titles IV and V;
(e)
CCPs authorised to offer services or activities in the F5United Kingdom established in a third country, and the services or activities which they are authorised to provide or perform, including the classes of financial instruments covered by their authorisation;
(f)
trade repositories authorised to offer services or activities in the F6United Kingdom;
(g)
fines and periodic penalty payments imposed in accordance with F7regulation 68 of the Over the Counter Derivatives, Central Counterparties and Trade Repositories (Amendment, etc., and Transitional Provision) (EU Exit) Regulations 2019;
(h)
the public register referred to in Article 6.
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3.
F9The websites referred to in this Article shall be publicly accessible and regularly updated, and shall provide information in a clear format.
Article 89Transitional provisions
F101.
Until F1118 June 2023, the clearing obligation set out in Article 4 shall not apply to OTC derivative contracts that are objectively measurable as reducing investment risks that directly relate to the financial solvency of pension scheme arrangements F12or EEA pension scheme arrangements, and to entities established to provide compensation to members of such arrangements in case of default.
The clearing obligation set out in Article 4 shall not apply to OTC derivative contracts as referred to in the first subparagraph of this paragraph entered into by pension scheme arrangements from 17 August 2018 until 16 June 2019 .
The OTC derivative contracts, which would otherwise be subject to the clearing obligation under Article 4, entered into by those entities during this period shall be subject to the requirements laid down in Article 11.
F13The Treasury may make regulations extending the exemption referred to in the first sub-paragraph by a period of up to two years at a time where it concludes that no appropriate technical solution has been developed for the transfer by pension scheme arrangements and EEA pension scheme arrangements of cash and non-cash collateral as variation margins and that the adverse effect of centrally clearing derivative contracts on the retirement benefits of future pensioners remains.
In this paragraph, and in paragraph 2, “EEA pension scheme arrangement” means a pension scheme arrangement as defined by Article 2(10) of Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories as it has effect in EU law.
F142.
This paragraph applies to:
(a)
pension scheme arrangements that fall within point (c) of Article 2(10); and
(b)
EEA pension scheme arrangements that fall within points (c) or (d) of Article 2(10) of Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories as it has effect in EU law.
For the pension scheme arrangements and EEA pension scheme arrangements to which this paragraph applies, the exemption referred to in the first sub-paragraph of paragraph 1 shall only apply where it is granted by the FCA for types of entities or types of arrangements. The FCA shall only grant an exemption where it is satisfied that the type of entities or the type of arrangements fall within the description of those arrangements to which this paragraph applies, and that they encounter difficulties in meeting the variation margin requirements. The FCA must grant or refuse an exemption within 30 calendar days of receipt of a request for an exemption.
The FCA shall publish on its website a list of types of entities and types of arrangements which have been granted an exemption in accordance with this paragraph.
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F163b.
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F163c.
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F154.
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F155.
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F17 5a.
Until 15 December 2021 or until a decision is made under Article 25 on the recognition of a CCP, whichever is earlier, that CCP shall apply the treatment specified in the second sub-paragraph of this paragraph.
Until the deadline defined in the first sub-paragraph of this paragraph, and subject to the third sub-paragraph of this paragraph, where the CCP neither has a default fund nor has in place a binding arrangement with its clearing members that allows it to use all or part of the initial margin received from its clearing members as if they were pre-funded contributions, the information it is to report in accordance with paragraph 1 of Article 50c shall include the total amount of initial margin it has received from its clearing members.
The Treasury may by regulations extend the deadline referred to in the first sub-paragraph by 12 months.
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F19Article 89aFurther transitional provision
(1.
Until 3 January 2021:
(a)
the clearing obligation set out in Article 4 and the risk mitigation procedures set out in paragraph 3 of Article 11 do not apply to C6 energy derivative contracts entered into by non-financial counterparties that meet the conditions in paragraph 1 of Article 10 of this Regulation or by non-financial counterparties that are authorised for the first time as investment firms on or after 3 January 2018; and
(b)
such C6 energy derivative contracts are not considered to be OTC derivative contracts for the purposes of the clearing threshold set out in Article 10.
C6 energy derivative contracts benefiting from the transitional regime set out in point (a) shall be subject to all other requirements laid down in this Regulation.
(2.
The FCA shall determine whether paragraph 1 applies to the contract concerned. The FCA shall publish on its website a list of those C6 energy derivative contracts to which that paragraph does apply.
(3.
In this Article:
“C6 energy derivative contracts” means options, futures, swaps, and any other derivative contracts mentioned in paragraph 6 of Part 1 of Schedule 2 to the Regulated Activities Order relating to coal or oil that are traded on a UK OTF and must be physically settled;
“investment firms” means investment firms within point (a) of point (8) of Article 2;
“UK OTF” has the meaning given in Article 2(1)(13A) of the MIFIR.
F20 Article 90 Staff and resources of ESMA
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F21Article 91Entry into force
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