Article 35B Transitional for establishment and validation of procedures
11. By way of derogation from Article 2(2), counterparties may provide in their risk-management procedures in relation to non-centrally cleared derivative contracts that for a period of 6 months or until the end of the calendar year, whichever period ends the latest, from the date where, for the first time:
(a) a counterparty becomes subject to the requirements in Article 2(1) of this Regulation to maintain risk-management procedures in respect of such non-centrally cleared derivative contracts, the requirements to calculate and collect margins in accordance with Section 3 of Chapter 1 of this Regulation do not apply to transactions with such counterparty;
(b) a derogation in Articles 23 or 24 of this Regulation no longer applies, the requirements to calculate and collect margins in accordance with Section 3 of Chapter 1 of this Regulation do not apply to transactions entered into with counterparties which have ceased benefiting from the derogations in Articles 23 or 24.
2. By way of derogation from Article 2(2), counterparties may provide in their risk-management procedures in relation to non-centrally cleared derivative contracts that for a period of 12 months from the date the derogation in Article 31 of this Regulation no longer applies, the requirements to calculate and collect margins in accordance with Section 3 of Chapter 1 of this Regulation do not apply to transactions entered into with counterparties which have ceased benefiting from the derogation in Article 31.
3. This Article does not apply to Articles 28, 36 and 38.