A Commission Delegated Regulation has been published in the Official Journal of the European Union that extends the transitional exemption period under the European Market Infrastructure Regulation for pension funds to comply with the EU clearing obligation for a further year. The original date was extended from August 16, 2015 to August 16, 2017 by the European Commission in 2015 over concerns that if pension funds were subjected to the clearing obligation, they would need to source cash for the margin requirements of CCPs. The Commission, and other EU regulators, have asked CCPs to develop a solution that would allow pension funds to clear derivatives without the obligation being too burdensome for pension funds but which would also allow CCPs to liquidate positions rapidly in the event of a default. The Commission is of the opinion that no sufficiently appropriate technical solutions have been found by CCPs yet. The Delegated Regulation extending the transitional exemption period to August 16, 2018 entered into force on April 1, 2017.

View the Delegated Regulation.