{"release":{"id":"a4f2a0495fe55b47323883f82977a9b34ab66171ec9623e39925d3a7045b6c81","published":"2026-11-01T16:41:30Z","pinned":false},"limits":{"coverage":{"history":"from:2023-02-14","held_since":"2023-02-14","gaps":[],"covered":["2016/2251 — RTS — Risk-mitigation techniques for OTC derivative contracts [in force] L2"],"not_covered":["national guidance","court decisions"]},"freshness":{"release_id":"a4f2a0495fe55b47323883f82977a9b34ab66171ec9623e39925d3a7045b6c81","release_published":"2026-11-01T16:41:30Z","checked_at":"2026-10-20","checked_against":"EUR-Lex"},"truncation":null,"failures":[],"incomplete":[]},"page":{"path":"/emir/level-2/rts/2016-2251-risk-mitigation-techniques-for-otc-derivative-contracts/articles/19","url":"https://www.headlesslaw.com/emir/level-2/rts/2016-2251-risk-mitigation-techniques-for-otc-derivative-contracts/articles/19","title":"Article 19 — Collateral management and segregation","family":"l2_unit_view","work_id":"spaces/emir/level-2/rts/2016-2251-risk-mitigation-techniques-for-otc-derivative-contracts","view_of":"/emir/level-2/rts/2016-2251-risk-mitigation-techniques-for-otc-derivative-contracts","status":"in_force","force_status":"in_force","date_state":"current","requested_date":null,"as_of":"2026-11-01","applies_from":null,"application":null,"version_label":"Consolidated version of 14 February 2023","check":{"against":"EUR-Lex","on":"2026-10-20"},"check_result":"matched","official_url":"https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02016R2251-20230214","valid_from":"2017-01-04","valid_until":null,"content_id":"a04539ac5fd3b7d8","versions":["2017-01-04"],"version_url":"https://www.headlesslaw.com/emir/level-2/rts/2016-2251-risk-mitigation-techniques-for-otc-derivative-contracts/articles/19/versions/2023-02-14","revision_url":"https://www.headlesslaw.com/emir/level-2/rts/2016-2251-risk-mitigation-techniques-for-otc-derivative-contracts/articles/19/versions/2023-02-14/rev/a04539ac5fd3b7d8","versions_url":"https://www.headlesslaw.com/emir/level-2/rts/2016-2251-risk-mitigation-techniques-for-otc-derivative-contracts/articles/19/versions","relations_url":"https://www.headlesslaw.com/emir/level-2/rts/2016-2251-risk-mitigation-techniques-for-otc-derivative-contracts/articles/19/relations","act_url":"https://www.headlesslaw.com/emir/level-2/rts/2016-2251-risk-mitigation-techniques-for-otc-derivative-contracts#art-19","source_line":"Commission Delegated Regulation (EU) 2016/2251 · binding · OJ L 340, 15.12.2016 · dated 4 Oct 2016 [in force]","attribution":{"prepared_by":"European Commission","published_by":"Publications Office of the EU","published_in":"Official Journal of the European Union","document_type":"delegated_regulation","legal_nature":"binding_adopted","addressees":"not stated in the document","dates":{"document_date":"2016-10-04","entry_into_force":"2017-01-04","locators":{"document_date":"CELLAR 32016R2251 work_date_document","entry_into_force":"CELLAR 32016R2251 resource_legal_date_entry-into-force (earliest)"}},"adoption":null},"context":{"act":{"work_id":"spaces/emir/level-2/rts/2016-2251-risk-mitigation-techniques-for-otc-derivative-contracts","path":"/emir/level-2/rts/2016-2251-risk-mitigation-techniques-for-otc-derivative-contracts","name":"Commission Delegated Regulation (EU) 2016/2251","number":"2016/2251","celex":"32016R2251","title_official":"COMMISSION DELEGATED REGULATION (EU) 2016/2251 of 4 October 2016 supplementing Regulation (EU) No 648/2012 of the European Parliament and of the Council on OTC derivatives, central counterparties and trade repositories with regard to regulatory technical standards for risk-mitigation techniques for OTC derivative contracts not cleared by a central counterparty (Text with EEA relevance)","document_date":"2016-10-04"},"position":{"kind":"article","key":"19","index":19,"articles":42,"annexes":4},"prev":{"path":"/emir/level-2/rts/2016-2251-risk-mitigation-techniques-for-otc-derivative-contracts/articles/18","key":"18","title":"Article 18 — Qualitative requirements"},"next":{"path":"/emir/level-2/rts/2016-2251-risk-mitigation-techniques-for-otc-derivative-contracts/articles/20","key":"20","title":"Article 20 — Treatment of collected initial margins"},"act_anchor":"#art-19"}},"provenance":{"official_url":"https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02016R2251-20230214","check":{"result":"matched","checked_at":"2026-10-20","against":"EUR-Lex"},"repo_path":"spaces/emir/level-2/rts/2016-2251-risk-mitigation-techniques-for-otc-derivative-contracts.md","unit_text_sha256":"1b5e4a7351ad08844e814e90f7d7414179c0f0d5fd4e7be6720b70e7e67b33bd","note":"the unit is a byte-exact part of the act page, whose check record covers it"},"unit":{"locator":"spaces/emir/level-2/rts/2016-2251-risk-mitigation-techniques-for-otc-derivative-contracts/art-19","kind":"article","key":"19","heading":"Article 19 — Collateral management and segregation","text":"## <a id=\"art-19\"></a>Article 19 — Collateral management and segregation\n\n1. <a id=\"art-19-p-1\"></a>The procedures referred to in Article 2(2)(c) shall include the following:\n\n    <a id=\"art-19-p-1-a\"></a>**(a)** a daily valuation of the collateral held in accordance with Section 6;\n\n    <a id=\"art-19-p-1-b\"></a>**(b)** the legal arrangements and a collateral holding structure that allow access to the received collateral where it is being held by a third party;\n\n    <a id=\"art-19-p-1-c\"></a>**(c)** where initial margin is held by the collateral provider, that the collateral is held in insolvency-remote custody accounts;\n\n    <a id=\"art-19-p-1-d\"></a>**(d)** that non-cash initial margin is maintained in accordance with paragraphs 3 and 4;\n\n    <a id=\"art-19-p-1-e\"></a>**(e)** that cash collected as initial margin is maintained in cash accounts at central banks or credit institutions which fulfil all of the following conditions:\n\n    <a id=\"art-19-p-1-e-i\"></a>**(i)** they are authorised in accordance with Directive 2013/36/EU or are authorised in a third country whose supervisory and regulatory arrangements have been found to be equivalent in accordance with Article 142(2) of Regulation (EU) No 575/2013;\n\n    <a id=\"art-19-p-1-e-ii\"></a>**(ii)** they are neither the posting nor the collecting counterparties, nor part of the same group as either of the counterparties;\n\n    <a id=\"art-19-p-1-f\"></a>**(f)** the availability of unused collateral to the liquidator or other insolvency official of the defaulting counterparty;\n\n    <a id=\"art-19-p-1-g\"></a>**(g)** the initial margin is freely transferable to the posting counterparty in a timely manner in case of the default of the collecting counterparty;\n\n    <a id=\"art-19-p-1-h\"></a>**(h)** that non-cash collateral is transferable without any regulatory or legal constraints or third-party claims, including those of the liquidator of the collecting counterparty or third-party custodian, other than liens for fees and expenses incurred in providing the custodial accounts and other than liens routinely imposed on all securities in a clearing system in which such collateral may be held;\n\n    <a id=\"art-19-p-1-i\"></a>**(i)** that any unused collateral is returned to the posting counterparty in full, excluding costs and expenses incurred for the process of collecting and holding the collateral.\n\n2. <a id=\"art-19-p-2\"></a>Any collateral posted as initial or variation margin may be substituted by alternative collateral where all of the following conditions are met:\n\n    <a id=\"art-19-p-2-a\"></a>**(a)** the substitution is made in accordance with the terms of the agreement between the counterparties referred to in Article 3;\n\n    <a id=\"art-19-p-2-b\"></a>**(b)** the alternative collateral is eligible in accordance with Section 2;\n\n    <a id=\"art-19-p-2-c\"></a>**(c)** the value of the alternative collateral is sufficient to meet all margin requirements after applying any relevant haircut.\n\n3. <a id=\"art-19-p-3\"></a>Initial margin shall be protected from the default or insolvency of the collecting counterparty by segregating it in either or both of the following ways:\n\n    <a id=\"art-19-p-3-a\"></a>**(a)** on the books and records of a third-party holder or custodian;\n\n    <a id=\"art-19-p-3-b\"></a>**(b)** via other legally binding arrangements;\n\n4. <a id=\"art-19-p-4\"></a>Counterparties shall ensure that non-cash collateral exchanged as initial margin is segregated as follows:\n\n    <a id=\"art-19-p-4-a\"></a>**(a)** where collateral is held by the collecting counterparty on a proprietary basis, it shall be segregated from the rest of the proprietary assets of the collecting counterparty;\n\n    <a id=\"art-19-p-4-b\"></a>**(b)** where collateral is held by the posting counterparty on a non-proprietary basis, it shall be segregated from the rest of the proprietary assets of the posting counterparty;\n\n    <a id=\"art-19-p-4-c\"></a>**(c)** where collateral is held on the books and records of a custodian or other third-party holder, it shall be segregated from the proprietary assets of that third-party holder or custodian.\n\n5. <a id=\"art-19-p-5\"></a>Where non-cash collateral is held by the collecting party or by a third-party holder or custodian, the collecting counterparty shall always provide the posting counterparty with the option to segregate its collateral from the assets of other posting counterparties.\n\n6. <a id=\"art-19-p-6\"></a>Counterparties shall perform an independent legal review in order to verify that the segregation arrangements meet the requirements referred to in paragraph 1(g) and paragraphs 3, 4 and 5. That legal review may be conducted by an independent internal unit, or by an independent third party.\n\n7. <a id=\"art-19-p-7\"></a>Counterparties shall provide evidence to their competent authorities of compliance with paragraph 6 in relation to each relevant jurisdiction and, upon request by a competent authority, shall establish policies ensuring the continuous assessment of compliance.\n\n8. <a id=\"art-19-p-8\"></a>For the purposes of paragraph 1(e), the counterparties shall assess the credit quality of the credit institution referred to therein by using a methodology that does not solely or mechanistically rely on external credit quality assessments.\n\n","marks":[],"text_hash":"1b5e4a7351ad08844e814e90f7d7414179c0f0d5fd4e7be6720b70e7e67b33bd","revision":1}}