|The verification's subject||Yes||No|
Are your positions netted per counterparty and contracts before adding up the absolute notional value of all these net positions?
If you have marked "no" in the table above, you are at risk of non-compliance. In order to determine whether the non-financial counterparty (NFC) is above or below the clearing threshold, the NFC should first net their positions per counterparty and contracts and then add up the absolute notional value of all these net positions (calculated based on the notional amounts of the contracts).
Netting per contracts and counterparty means fully or partially offsetting contracts having exactly the same characteristics (type, underlying, maturity, etc.) with the only exception of the direction of the trade and notional amount (in case of partial offset) concluded with the same counterparty.
Check the next step for verification.