The Luxembourg financial sector regulator, the Commission de Surveillance du Secteur Financier (“CSSF”) has published on 19 January 2015 a very useful summary as regards the duties of non-financial counterparties (“NFCs”) in respect of the European Market Infrastructure Regulation No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (“EMIR”).

This summary is especially useful to give a broad view as regards the obligations applicable in this area to Luxembourg securitisation vehicles or other Luxembourg SPVs that do not qualify as alternative investment funds managed by an alternative investment fund manager.

The following aspects are dealt with by the CSSF in this summary:

  • Distinction between NFCs above and below the clearing threshold
  • Reporting obligations to trade repositories
  • Clearing obligations, whereby the CSSF summarises the rules which are applicable to (i) identify the contracts for hedging purposes, (ii) calculate the clearing thresholds, (iii) notify the CSSF and ESMA in case a threshold is exceeded
  • Risk mitigation techniques for non-centrally cleared transactions
  • The regime applicable to intragroup transactions

To read the summary of the CSSF, click here.


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