On March 2, 2017, the European Commission (the “Commission“) adopted a Delegated Regulation amending the European Market Infrastructure Regulation (“EMIR“) with regard to the list of exempted entities (C(2017) 1324 final).

EU central banks and public bodies tasked with managing and intervening in public debt are exempted from EMIR. As per article 1(6) of EMIR, the Commission is empowered to adopt delegated acts in accordance with Article 82 to amend the list of entities to which EMIR will not apply.

The Commission has accordingly assessed the treatment of central banks and public bodies managing public debt by a number of third countries where the implementation of OTC derivative reforms were sufficiently advanced, or which had specifically requested an assessment. As part of the process, the Commission consulted the six jurisdictions under assessment to gather information on their legal frameworks with respect to OTC derivatives and on the treatment, within those frameworks, of central banks and public bodies charged with or intervening in the management of the public debt. The Commission also consulted the Expert Group of the European Securities Committee, comprising member state representatives.

The Commission has concluded that central banks and public bodies charged with or intervening in the management of the public debt from Australia, Canada, Hong Kong, Mexico, Singapore and Switzerland should be exempt from the clearing and reporting requirements set out in EMIR. Article 1 of the Delegated Regulation therefore amends article 1(4)(c) of EMIR to add the central banks and public bodies of these jurisdictions to the list of exempted entities under EMIR. The Commission has previously exempted from EMIR the central banks and public bodies charged with or intervening in the management of the public debt in Japan and the United States of America

The Delegated Regulation will enter into force 20 days after it has been published in the Official Journal of the EU (OJ).