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Version date: 31 March 2015 - onwards

OTC Question 21: Responsibility [last update 31 March 2015]

 Article 2.1 of RTS on Third Country contracts

Art 2.1 of RTS on Third Country contracts - Responsibility

Which entity is responsible for assessing whether an OTC derivative contract would be covered by the "guarantee limb" of the RTS on Third Country contracts (i.e. Article 2(1) of Commission Delegated Regulation (EU) No 285/2014 of 13 February 2014) and for compliance with any obligations under EMIR arising as a result of the application of the RTS on Third Country contracts?

- the guarantor, the third country entity whose liabilities are covered (the "guaranteed entity") or the third country beneficiary of the guarantee?

OTC Answer 21

The regulation applies within the Union and the EU financial entity granting the guarantee is responsible for assessing whether the conditions are met for the regulation to apply and for ensuring that the relevant EMIR requirements are met. For this purpose, it can arrange the relevant procedure (e.g. a notification) with the guaranteed third country entity in order to get the information and data it needs to perform the assessment and ensure compliance.