NOR GVT OTC Derivatives Market

On May 11, NOR GVT updated on EMIR implementation measures.

  • NOR GVT announced consultation on implementation of EMIR-Refit and EMIR 2.2 reg on security, transparency provisions in OTC derivatives market, clearing obligations.
  • Follows EC Dec. 2020 proposed rules on ESMA CCPs penalty procedures, see #92768.
  • Follows NOR GVT May 2021 consulted on implementing EMIR refit, 2.2, see #105157.
  • Also, NOR GVT Apr. 2024 proposed various changes in financial market law, #207608.
  • Overview
  • The regulations focus on clearing obligation, suspension of the clearing obligation, the reporting requirements, risk-mitigation techniques for OTC derivatives contracts.
  • For contracts not cleared by a central counterparty, the registration and supervision of trade repositories and the requirements for trade repositories.
  • Context
  • Ministry of Finance launched consultation on implementation of the regs in Norway.
  • EMIR-Refit most important changes are related to the classification of counterparties, clearing obligation and reporting of derivative transactions.
  • It was included in the EEA Agreement in Feb. 2021 by EEA Committee dec. 50/2021.
  • Norway participated in the decision subject to the consent of the Storting.
  • EMIR 2.2 amends EMIR and ESMA reg 1095/2010 to strengthen supervision of key counterparties; assessed as EEA-relevant but not yet incorporated in EEA agreement.
  • Consultation Scope
  • In Oct. 2020, the Ministry of Finance requested NORFSA to study need for changes in Norwegian law to implement expected EEA obligations that correspond to both regs.
  • Latter proposed in a memorandum of Mar. 25, 2021 the regulations be implemented by incorporation in s17-1 of Securities Trading Act, clarifying provision in new s17-8.
  • Please note the memorandum references an incorrect number for EMIR 2.2 regulation.
  • Effectiveness
  • Comments on the proposal to be submitted by Aug. 10, 2021.
  • May 15, 2021 Update on EMIR 2.2
  • On May 15, 2021, Europalov republished information of May 10 on EMIR refit and 2.2.
  • Jun. 2024 Constitutional Requirements
  • On Jun. 27, 2024, NOR GVT announced fulfillment of constitutional requirements was reported thus the EEA Committee's decision will enter into force on Aug. 1, 2024.
  • Via Resolution 774 Storting agreed to approval of EEA Committee's decision 50/2021 of Feb. 2021 on incorporation of EMIR Refit into EEA Agreement.
  • This follows NOR GVT Jun. 2024 act amending financial market legislation #207608.

Regulators NOR GVT
Entity Types B/D; Bank; Depo; Exch; OTC
Reference PR 6/27/2024; PR 5/15/2021; CP, PR, 5/11/2021; Securities Trading Act; Memo 3/25/2021; EEA Dec 50/2021; EMIR 2.2 Reg 2019/2099; EMIR-Refit Reg 2019/834; EMIR Reg 648/2012; ESMA Reg 1095/2010; EEA Agreement
Functions Compliance; Financial; Legal; Operations; Outsourcing; Risk; Settlement; Treasury
Countries Norway
Products Banking; Clearing; Derivatives; Securities
Regions EMEA
Rule Type Final
Rule Date 5/11/2021
Effective Date 8/1/2024
Rule Id 105233
Linked to Rule :92768
Reg. Last Update 6/27/2024
Report Section EU

Last substantive update on 07/02/2024