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Text as of 12 Aug 2022 · Consolidated version of 12 August 2022 · Same wording as today’s text.Today’s text

Article 13a — Amendments to legacy contracts for the purpose of the implementation of benchmark reforms

Financial servicesLevel 1RegulationEMIRIn forceVerifiedOfficial source

13a(1)

1.Counterparties may continue to apply the risk-management procedures referred to in Article 11(3) that they have in place on 13 February 2021 in respect of OTC derivative contracts which are not cleared by a CCP and that are entered into or novated before the date on which the obligation to have risk-management procedures in place pursuant to Article 11(3) takes effect where, after 13 February 2021, those contracts are subsequently amended or novated for the sole purpose of replacing a reference benchmark or introducing a fallback provision in relation to any benchmark referenced in that contract.

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13a(2)

2.Contracts which are entered into or novated before the date on which the clearing obligation takes effect pursuant to Article 4 and which, after 13 February 2021, are subsequently amended or novated for the sole purpose of replacing a reference benchmark or introducing a fallback provision in relation to any benchmark referenced in that contract, shall not, for that reason, become subject to the clearing obligation referred to in Article 4.

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13a(3)

3.Paragraphs 1 and 2 shall apply only to OTC derivative contracts the amendment or novation of which:

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13a(3)(a)
(a)is necessary for the purpose of replacing a benchmark in the context of benchmark reforms;
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13a(3)(b)
(b)does not change the economic substance or risk factor represented by the reference to a benchmark in such contract; and
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13a(3)(c)
(c)does not encompass other changes to any legal term of that contract that does not relate to the benchmark referenced and thus potentially amends the contract in a way that effectively requires it to be considered a new contract.
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