23rd February 2017

Variation margin exchange under the EMIR RTS on OTC derivatives

For your information, ESMA, EBA and EIOPA published, on Thursday 23 February 2017, a statement on the implementation of the variation margin requirements under EMIR.

While reiterating that the application date of the VM requirements is the 1st of March 2017 and that no change to the application date in the regulation is possible, the three European supervisory authorities recognise the challenge, notably for smallest counterpaties, and encourage national competent authorities to adopt a risk-based approach (size of the exposure and default risk of the counterparty) in the application and enforcement of the rules.