CP25/30: Streamlining the UK EMIR Intragroup Regime

Read CP25/30[1]

Why we are consulting

The Temporary Intragroup Exemption Regime (TIGER) allows UK counterparties to apply for intragroup exemptions under the UK version of the European Market Infrastructure Regulation (UK EMIR) when trading over-the-counter (OTC) derivatives with group entities in non-equivalent jurisdictions.  

The TIGER expires on 31 December 2026. Industry feedback suggests that the exemption process could be streamlined. To address this, we aim to create a permanent, more proportionate regime for UK firms. 

A more streamlined intragroup regime:

• Supports UK firms to manage risk.
• Reduces unnecessary costs.

This will support market integrity as well as our wider strategic objective to support growth.

The Treasury plans to amend the UK EMIR and make additional changes to simplify the Intragroup Regime.

To support the Treasury’s changes, we are consulting on proposals to:

• Further streamline the Intragroup Regime.
• Simplify and consolidate our Binding Technical Standards (BTS).
• Make consequential amendments to align with changes being made to UK EMIR.

By streamlining the UK EMIR Intragroup Regime, we are reducing disproportionate burdens for counterparties as part of our strategic priorities to support growth and be a smarter regulator.

Who this is for

• Counterparties subject to UK EMIR requirements.
• Industry associations.
• Law firms.
• Consultants.

Next steps

Our CP should be read in conjunction with the Treasury’s draft statutory instrument[2] to get a full picture of the proposed changes to the Intragroup Regime. 

This consultation has now closed. We will publish feedback on responses and issue a Policy Statement once we have reviewed your comments.

The new rules are expected to come into force before the TIGER expires on 31 December 2026. 

Background

Under UK EMIR, counterparties must:

• Centrally clear certain OTC derivatives via a Central Counterparty (CCP).
• Meet bilateral margin requirements for all OTC derivates that don’t require mandatory clearing.  

UK EMIR provides exemptions from the clearing obligation and margin requirements for intragroup transactions, as long as the counterparties meet certain conditions.

Read more on UK EMIR notifications and exemptions[3].

The Treasury has published a draft statutory instrument (SI), which sets out proposals to amend UK EMIR.

The proposals aim to create a permanent, more streamlined Intragroup Regime within UK EMIR. This includes making intragroup exemptions currently enabled by TIGER permanent.