EMIR Refit – Key Changes

Financial counterparties ("FCs") and non-financial counterparties ("NFCs") should now assess whether they are ready.

New counterparty category: Small financial counterparty

One of the most significant amendments is the introduction of a new counterparty category, the small financial counterparty ("SFC"). SFCs are FCs with a limited trading volume in derivative instruments (below a certain threshold for over-the-counter ("OTC") derivatives), such as certain investment funds or small banks. SFCs may choose not to clear their derivative contracts.

The relevant clearing thresholds will be similar to the clearing thresholds already existing for NFCs and will be set at:

• EUR 1 billion in gross notional value for OTC credit derivative contracts;