The proposed RTS align the treatment of NFCs established in a third country with the treatment of EU NFCs as recommended in the EBA CVA Report, published on 25 February 2015. However, as NFCs established in a third country are not directly subject to EU regulation, these RTS specify that it is for the institution to check that a counterparty established in a third country would qualify as a NFC, if it were established in the EU and, if that is the case, that this NFC calculates and does not exceed the clearing threshold in accordance with EMIR provisions in this respect.
As in some instances, it could be disproportionate to require NFCs established in a third country to compute the EMIR clearing threshold at the inception of each trade, the EBA is consulting on two options, the first one requires institutions to meet the requirements of these RTS at trade inception, while the second option introduces a quarterly frequency for institutions' due diligence requirements.
Comments to this consultation can be sent to the EBA by 5 November 2015. A public hearing will take place at the EBA premises on 12 October 2015 from 14.00 to 16.00 UK time.
Press release
Consultation paper
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