The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has updated Q&A on EMIR implementation
ESMA’s latest Q&A Update on EMIR Implementation is focused on two questions:
OTC Question 3 enriched with the additional clarification on ‘Calculation of the clearing threshold’ for financial counterparty that it should it include in the calculation the OTC derivative contracts that are objectively measurable as reducing risks directly relating to the commercial activity or treasury financing activity entered into by the non-financial counterparties that are part of the same group.
OTC Question 10 the European Commission in accordance with article 16b(5) of the ESMA Regulation clarified hedging exemption for non-financial counterparties when using OTC derivative contracts to hedge certain risks.
ESMA will periodically review and update Q & A’s. You can review previous Point Nine comments on ESMA updates here.
