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.................. [place and date] .................... [Parent Company] ..................... [Subsidiary] |
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............................................ relevant financial supervisory authority
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NOTIFICATION
ABOUT THE INTENTION TO MAKE USE OF THE INTRAGROUP TRANSACTIONS EXEMPTION
FROM THE CLEARING OBLIGATION
PURSUANT TO THE EMIR REGULATION
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Acting for and on behalf:
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................with its registered office in ................, at the address: ................, registered in ................ under the registration number ................[further administration details] (Parent Company);
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................with its registered office in ................, at the address: ................, registered in ................ under the registration number ................[further administration details] (Subsidiary);
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pursuant to Article 4(2)(a) of the Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (OJ L 201, 27.7.2012, p. 1, as amended - the EMIR Regulation),
we hereby notify the [relevant financial supervisory authority] the intention to make use of the intragroup transactions exemption to be entered between:
.......... [enter Parent Company details], and
..........its subsidiary [enter Subsidiary details]
from the clearing obligation.
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The notification is based on the following circumstances:
1.The exemption in relation to the clearing obligation pursuant to Article 4(2)(a) of the EMIR Regulation refers to the following types of the derivatives to be entered into between the Parent Company and the Subsidiary outside the regulated market:
[type of the derivative, underlying asset, settlement mechanism, trading venue, settlement date] (Derivatives Contracts);
2. The Parent Company and the Subsidiary intend to enter into the Derivatives Contracts not earlier than [30 calendar days from the date of delivery to the financial supervisory authority and relevant foreign financial supervisory authority];
3. Derivatives Contracts, which are intended to be entered by the Parent Company and the Subsidiary not earlier than on the date indicated in the point 2 above, will constitute intragroup transactions between non-financial counterparties within the meaning of Article 3(1) of the EMIR Regulation, and are entered into between two non-financial counterparties (i.e. Parent Company and the Subsidiary) having their registered offices in different Member States of the European Union (i.e. in ............ and in ...........);
4.Parent Company and the Subsidiary are included in the same consolidation on a full basis pursuant to the International Financial Reporting Standards (IFRS);
5. Parent Company and the Subsidiary are subject to an appropriate centralised risk evaluation, measurement and control procedures, which is evidenced by the following documents and procedures describing the centrally-defined risk management policies and controls, which apply between the Parent Company and the Subsidiary, demonstrating, in particular, that:
(a) senior management is responsible for risk management and that risk measurement is regularly reviewed;
(b) regular and transparent communication mechanisms are established between the Parent Company and the Subsidiary, so that the management bodies, senior management, business lines, the risk management function and other control functions can all share information about risk measurement, analysis and monitoring;
(c) internal procedures and information systems are consistent throughout the Parent Company and the Subsidiary and reliable so that all sources of relevant risks can be identified, measured, and monitored on an aggregated basis and also, to the extent necessary, by entity, business line, and portfolio;
(d) key risk information is regularly reported to the central risk management function to enable appropriate centralised evaluation, measurement and control risk across the Parent Company and the Subsidiary.
We stand ready to submit any other documents and explanations, which are assessed as necessary.
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Attachments:
1. ..........
2. ..........
3. ..........
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for and on behalf Parent Company |
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_____________________________ |
_____________________________ |
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for and on behalf Subsidiary |
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_____________________________ |
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* This draft notification is applicable to counterparties in different European Union Member States.