UK counterparties to derivatives transactions should note that there is an upcoming filing deadline under UK EMIR.
Counterparties subject to UK EMIR are required to assess whether the volume of their over-the-counter (OTC) derivatives transactions exceed certain "clearing thresholds" under UK EMIR and, where applicable, will need to notify the UK Financial Conduct Authority (FCA) of such calculations.
The first notification to the FCA must be made by no later than 17 June 2021, using the relevant FCA forms on the FCA's Connect platform, even if the counterparty had already delivered a similar notification to the FCA under EU EMIR prior to the end of the Brexit withdrawal implementation period.
Does the notification requirement apply to you?
The notification requirement applies to all UK financial and non-financial counterparties that exceed the clearing thresholds or that have chosen not to conduct the calculations. "Financial counterparties" or "FCs" include banks, investment firms, pension schemes and alternative investment funds (AIFs). "Non-financial counterparties" or "NFCs" are parties to derivatives transactions who do not fall within any of the categories of FC.
Where an FC or an NFC has exceeded at least one of the clearing thresholds outlined below it will be treated as a large FC or an NFC+, respectively. Small FCs and NFC-s are those FCs and NFCs who do not exceed these thresholds. Note that where NFCs exceed a threshold, the clearing obligation will apply only in respect of the class of derivatives for which the threshold is exceeded (whereas the margin obligation will apply in respect of all classes of derivatives).