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.