Due to the uncertainties which are characterizing the ongoing negotiations in the approaching of the expected date of withdrawal (i.e. Brexit), lacking both an agreement and a national transitional regime, Consob deems it is essential, for managing the negotiations as much as possible in an ordered way and for investors' protection, to provide operators with a special reference disclosure to deal with the necessary actions to be taken given this scenario.

Following the previously accomplished publication of the Warning n. 3 of 12 March 2019, Consob disclosed today a Communication regarding both the servicing of Over the Counter (OTC) derivative contracts not offset by a central counterparty and settled with UK counterparties, and the operations of the trading venues, including those trading venues managing trading systems for negotiating government bonds [Communication no. 4 of 14 March 2019].

With reference to the OTC derivative contracts which are not offset by a central counterparty, it has been recalled that yesterday, March 13, two delegated regulations of the European Commission were published in the Official Journal of the EU. These regulations establish that the contracts today in force with UK counterparties may be transferred to a European Union counterparty (maintaining the current exemptions from the clearing obligations as well from the margin requirements set by the EMIR Regulation), provided that the transfers be finalized within the twelve months following the date of the Brexit.

During the twelve months period fixed by the delegated regulations for the ensuing transfer, Consob will exercise its supervision powers, with a proportionate approach, to the servicing of OTC derivative contracts concluded with UK counterparties, even with the purpose of facilitating the continuity of the contracts themselves.

In the meantime, Consob is carrying out its preliminary inquiries on the requests for authorization and acknowledgment by the British trading venues aiming to perform their activities in Italy and vice-versa. These inquiries will be settled as quickly as possible with the aim of ensuring, in compliance with the relevant provisions on the subject, the continuity of the operations of the UK and Italian operators, respectively, on the Italian and UK trading venues.