HM Treasury has published a draft statutory instrument for technical comment, with a policy note, to reform the UK EMIR intragroup exemption regime for over-the-counter derivatives. The draft would replace the UK’s Temporary Intragroup Exemption Regime (TIGER) with a permanent framework that broadens access to intragroup exemptions for clearing and margin and streamlines how firms obtain and use those exemptions. The draft regulations amend the UK EMIR definition of “intragroup transaction” so transactions within the same consolidated group qualify regardless of the jurisdiction of group entities, removing the current link to equivalence determinations. For intragroup transactions between a UK entity and an overseas group entity, the exemptions from the clearing obligation and from margin requirements for non-cleared contracts would move to a notification model where a firm may rely on the exemption after the Financial Conduct Authority has not objected within 30 calendar days, or earlier if the FCA confirms non-objection. The draft also removes the requirement for public disclosure of margin exemptions and includes transitional provisions so existing exemptions granted or not objected to under the current temporary arrangements can continue without reapplication, subject to specified conditions. HM Treasury is inviting technical comments on the draft instrument by 16 January 2026 and intends to lay the statutory instrument before Parliament in the first half of 2026, aiming for the new framework to be in force when TIGER expires at the end of 2026. The policy note also flags supporting FCA rule changes to implement the non-objection process, and indicates the final instrument will be adjusted to align with the Prudential Regulation Authority’s Basel 3.1 approach to Credit Valuation Adjustment capital exemptions, which is stated to take effect on 1 January 2027.
HM Treasury 2025-11-05
HM Treasury publishes draft regulations to make intragroup OTC derivatives clearing and margin exemptions permanent and introduce an FCA 30-day non-objection process
HM Treasury released a draft statutory instrument for technical comment to reform the UK EMIR intragroup exemption regime for over-the-counter derivatives. The draft proposes replacing the Temporary Intragroup Exemption Regime with a permanent framework, broadening access to exemptions and streamlining the process. It introduces a notification model for exemptions and aligns with the Prudential Regulation Authority’s Basel 3.1 approach to Credit Valuation Adjustment capital exemptions.