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Report from the Commission to the European Parliament and the Council on the International Treatment of Central Banks and Public Entities Managing Public Debt with regard to OTC Derivatives Transactions

Report from the Commission to the European Parliament and the Council on the International Treatment of Central Banks and Public Entities Managing Public Debt with regard to OTC Derivatives Transactions

The Regulation on OTC derivatives, central counterparties and trade repositories (EMIR) of 4 July 2012 requires, inter alia, the central clearing of all standardised OTC derivatives contracts, the reporting of all derivatives contracts to trade repositories and the implementation of risk-mitigation techniques for those trades which are not centrally cleared. According to Article 1(4) of EMIR, the Union’s central banks and Union public bodies charged with or intervening in the management of public debt are exempted from EMIR and are therefore not subject to these obligations. Under Article 1(6) of EMIR, the European Commission is empowered to amend the list of exempted entities by way of a Delegated Act if it concludes, after analysing the international treatment of central banks and of public bodies managing public debt in other jurisdictions’ legal frameworks and informing the European Parliament and the Council of the results, that the exemption of the monetary responsibilities of those third-country central banks from the clearing and reporting obligation is necessary. […]