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# 2017\_3511 — Q\&A — Scope of the Covered Bond Exemption \[Final Q\&A]

*Final Q\&A · EBA publication · Checked against the EBA publication on 11 Oct 2026 ·* [*Official source*](https://www.eba.europa.eu/single-rule-book-qa/qna/view/publicId/2017_3511)

|                         |                                                                       |
| ----------------------- | --------------------------------------------------------------------- |
| **Full title**          | 2017\_3511 — Q\&A — Scope of the Covered Bond Exemption \[Final Q\&A] |
| **Issuer**              | EBA                                                                   |
| **Reference**           | 2017\_3511                                                            |
| **Document type**       | Q\&A                                                                  |
| **Date**                | published 19 March 2021                                               |
| **Addressees**          | Not recorded                                                          |
| **Legal basis**         | Article 11(15) EMIR                                                   |
| **Related instruments** | None recorded                                                         |
| **Text on this page**   | Word for word — the full text of the EBA publication                  |

**Scope of the Covered Bond Exemption as set out in Article 30 of the Margin Rules.**

#### Question

Does the exemption in Article 30 of the Margin Rules concerning OTC derivatives concluded in connection with covered bonds apply where the conditions in Article 30.2 are satisfied in respect of all such covered bonds or only to those covered bonds that are issued by credit institutions that have their registered office in the European Union and which are subject to special public supervision designed to protect bond holders?

#### Background

This is in respect of existing transactions where EU financial institutions (acting as hedging banks) face a third country covered bond issuer.

***

#### Answer

Note: The answer to this Q\&A has been prepared by the three ESAs, and is part of guidance provided by the ESAs in the context of RTS 2016/2251, which can be accessed here. The answer is included here for infromation only. (Q\&As on other legislation is of relevance to more than one ESA can be accessed under <https://www.eba.europa.eu/about-us/organisation/joint-committee/q-and-s>.)

According to Article 30 of the Commission Delegated Regulation (EU) 2016/2251 (RTS 2016/2251), each of the conditions set out in Article 30(2) RTS 2016/2251 must be fully met. Article 30(2)(f) of RTS 2016/2251 also requires that the covered bond with which the OTC derivative transaction is associated with must meet the requirements in paragraphs (1), (2), and (3) of Article 129 of Regulation (EU) No 575/2013 (CRR).

Article 129(1) CRR provides preferential credit risk weighting treatment only for “bonds as referred to in Article 52(4) of Directive 2009/65 (“UCITS Directive”)”. Article 52(4) of the UCITS Directive in turn refers to bonds that are issued by a credit institution, which has its registered office in a Member State and is subject by law to special public supervision designed to protect bond-holders.

Hence, the exemption can only be applied to those covered bonds that are issued by EU based credit institutions that have their registered office in the European Union and which are subject to special public supervision designed to protect bond holders.

***

### Related Level 1 articles

* [Article 11 — Risk-mitigation techniques for OTC derivative contracts not cleared by a CCP](/emir/articles/11.md)