Delegated Regulation (EU) 2016/592 is amended as follows:

1. (1)

   in Article 3, the following paragraph is added:

   ‘3.

   By way of derogation from paragraphs 1 and 2, in respect of contracts pertaining to a class of OTC derivatives set out in the Annex, the clearing obligation shall take effect 12 months from the date of application of this Regulation where the following conditions are fulfilled:

   (a)

   the clearing obligation has not been triggered by 11 April 2019;

   (b)

   the contracts are novated for the sole purpose of replacing the counterparty established in the United Kingdom with a counterparty established in a Member State.’;

2. (2)

   in Article 4, paragraph 3 is replaced by the following:

   ‘3.

   For financial counterparties in Category 3 and for transactions referred to in paragraphs 2 and 3 of Article 3 of this Regulation concluded between financial counterparties, the minimum remaining maturity referred to in point (ii) of Article 4(1)(b) of Regulation (EU) No 648/2012, at the date the clearing obligation takes effect, shall be 5 years and 3 months.’