In view of Brexit and in the absence of a national transitional regime, CONSOB, in order to ensure the orderly trading conditions and to protect savers, deems it essential to provide operators with a specific information as to manage the measures that may be necessary in such scenario. Pursuant to Communication N. 4 issued on 14 March 2019, CONSOB has reaffirmed some guidelines addressed to the market operators relating to the management of Over the Counter (OTC) derivative contracts not subject to central counterparty clearing and entered into with UK counterparties (so-called servicing) and the operations of the trading venues, including those managing trading systems for government securities trading.
(i) OTC derivative contracts servicing not subject to central counterparty clearing and entered into with UK counterparties
In line with the Delegated Regulations of the European Commission adopted in relation to this subject1, there is no prejudice as to the possibility to transfer to an EU counterparty - maintaining the current exemptions from the clearing obligations and margin requirements established under the EMIR Regulation - OTC derivative contracts in place with UK counterparties, within the 12 months following the date of Brexit (which at this time appears to have been postponed until 30 June 2019).
Consob will supervise the servicing activities relating to OTC derivative contracts entered into with UK counterparties in order to facilitate continuity during the 12 months agreed by the Delegated Regulations in light of a possible transfer.
(ii) Operation of trading venues
Still in the absence of a national transitional regime, the Italian trading venues intending to extend the operation in any extra-EU country shall be granted the necessary authorization relating thereto pursuant to art. 26 and art. 70, paragraph 2, of Legislative Decree no. 58/98 (TUF). Similarly, the extra-EU trading venues intending to extend their operation in Italy shall be granted the necessary acknowledgment in accordance with art. 70, paragraph 1, TUF.
Consob keeps carrying out preliminary inquiries in relation to the authorization and acknowledgment requests of the UK trading venues intending to be active in Italy and vice-versa, thus ensuring that such inquiries are settled in the shortest time possible and aiming at providing the continuity in the activities carried out by the operators involved by BREXIT.