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EMIR REFIT – Updates

This blog is back after a short break.

Last week, ESMA published an updated Questions and Answers (Q+A) document, as well as a letter around REFIT (see here).

The updated Q+A, which can be found here, has two new answers:

  • OTC 3 (Page 18) – Relates to the calculation of the clearing threshold under the new rules.
  • TR 51 (page 118) – Relates to the intra-group exemption and is a new QA.

ESMA also issued a letter around the calculation of the clearing threshold, which can be found here. The letter is focused on the calculation of the clearing threshold for Financial Counterparty(FC) groups.  The issue is that when FCs calculate the threshold, they are required to include hedges in the calculation. At present, this includes subsidiaries that are Non Financial Counterparties. The letter acknowledges this as an issue, but states that at present it is not possible to change the legislation.

About avivhandler

Aviv is the Managing Director of ETR Advisory, a niche consultancy focused on the regulation of the commodity, energy and financial markets. He has more than 23 years of experience in the financial, energy and commodity markets, covering regulatory compliance, credit, risk and financial technology. Prior to founding ETR, he was Partner at SunGard Global Services, where he built a Centre of Excellence in European Energy and Commodity Regulation. Before that, he founded Coherence, a consulting firm specializing in credit risk in commodity and energy trading as well as software product management. The credit practice ultimately became part of Sirius Solutions, where he was the Managing Director of Europe. He has also held management roles at KWI and Iris Financial, among other organizations. Mr. Handler holds a degree in computer science from Imperial College, University of London.


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