On 7 June 2017, a Commission Implementing Regulation on the extension of the transitional periods related to own funds requirements for exposures to central counterparties set out in the Capital Requirements Regulation ("CRR") and EMIR was published in the Official Journal of the European Union. As the recognition process for some third-country CCPs is still incomplete, without an extension of the transitional periods, banks and investment firms in the EU would need to increase their own funds requirements for their exposures to those CCPs that are not yet recognised. The implementing Regulation extends the transitional period by an additional six months to 15 December 2017.
The proposals to amend the CRR published by the European Commission in November 2016 include an amendment to these transitional provisions. The proposed amendment would remove the need for the European Commission to continuously extend the transitional period by basing the transitional deadline instead on the timing of an application for recognition by a third country CCP.
The Commission Implementing Regulation can be accessed at:
http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32017R0954&from=EN
The proposed amendments to CRR can be accessed at:
http://finreg.shearman.com/european-commission-proposes-draft-quotcrd5quot-a .
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