On September 20, 2019, ISDA sent a letter to the European Commission, co-signed by EBF (European Banking Federation), EACB (European Association of Co-operative Banks (EACB) and ESBG (European Savings and Retail Banking Group), discussing the need to implement equivalence decisions for intragroup transactions as well as possible negative impacts of not extending the intragroup transactions derogation for non-cleared derivatives under EMIR Margin RTS.

The letter suggests priority jurisdictions for the European Commission’s equivalence programme in relation to intragroup transactions, outlining jurisdictions which have implemented – or will soon have implemented- BCBS-IOSCO compliant Margin requirements, hence a legal basis for equivalence determinations by the European Commission. Furthermore, the letter outlines possible negative impacts for banks engaging in various third country jurisdictions if the current derogation on intragroup derogation is not extended.