|Clearing threshold calculation under EMIR - ESMA explains what conglomerates are made of|
|Friday, 23 May 2014 14:21|
It needs to be recalled that positions taken by third-country non-financial entities in the same group as the non-financial counterparty, which would be non-financial counterparties if they were in the EU, count for the calculation of the EMIR clearing threshold.
Global conglomerates, EU-based subsidiaries thereof are relatively small, may be particularly affected.
ESMA in its EMIR Q&As update of 21 May 2014 (ESMA/2014/550) has underlined in this context that the group to which the non-financial counterparty belongs, includes subsidiaries, sisters and parent companies of the non-financial counterparty wherever the ultimate parent company is established.
This clarification is rather obvious, however, its regulatory origin and rank removes any remaining ambiguities.