Updated EMIR Q&As

Today, 6th of June, 2016 ESMA has issued an updated implementation Q&As regarding EMIR.

The update concerns the clearing obligations – categories of counterparties:

Categories 1 and 4

CCPs have published the list of counterparties classified in Category 1 (see Section 1.3 of the Public Register on the Clearing Obligation). It is therefore assumed that counterparties in Category 1 have completed their self-classification and made this information available to their counterparties. In addition, for Category 1 counterparties, frontloading started to apply on 21 February 2016.

Category 4 is composed of some non-financial counterparties only. The counterparty classification be-tween financial and non-financial counterparties should have been already completed as it is relevant for the compliance with other applicable requirements under EMIR (e.g. Article 11).

Categories 2 and 3

For counterparties which are neither in Category 1 nor in Category 4, the determination of the category of counterparty depends on the aggregate month-end average of outstanding gross notional amount of non-centrally cleared derivatives for January, February and March 2016 (at group level).

In addition, the frontloading start date for counterparties in Category 2 is set at 21 May 2016.