Draft Over the Counter Derivatives (Intragroup Transactions) Regulations 2026 published

The draft Over the Counter Derivatives (Intragroup Transactions) Regulations 2026 were laid before the UK Parliament and published, accompanied by an explanatory memorandum. The proposed Regulations aim to replace the temporary intragroup exemption regime (TIGER), which expires on 31 December, with a permanent framework for intragroup exemptions from clearing and margin requirements under the UK European Market Infrastructure Regulation (UK EMIR). The draft Regulations amend the definition of an intragroup transaction in Article 3 of UK EMIR so that any transaction between entities within the same consolidated group qualifies as intragroup, regardless of the jurisdiction in which those entities are established. They also amend the processes applicable to the intragroup exemptions in Article 4 and Article 11 of UK EMIR and provide for a notification process for transactions between a UK entity and an overseas entity in the same group or between two overseas entities in the same group, subject to a 30-day period within which the FCA can object. Finally, the Regulations also include transitional provisions to ensure that firms already benefiting from intragroup exemptions granted under TIGER can continue to rely on those exemptions after TIGER expires without having to submit a new notification to the FCA, provided certain conditions are met.

The draft Regulations were initially published for technical feedback in November 2025. While feedback was generally positive, some respondents requested that the notification requirement to the FCA be removed entirely to lighten the regulatory burden even further. The FCA has not made this change to ensure that it maintains appropriate regulatory oversight of market activity. Feedback was otherwise focused on drafting points to ensure the legislation would operate as intended and deliver the desired policy effect. Subject to Parliamentary approval, the new regime is expected to come into force before the expiry of TIGER on 31 December.

Return to main website.