Shifting obligations: limited time
EMIR Refit will enter into force on 17 June
2019 and will amend the existing EMIR legislation applicable to
European counterparties trading derivatives, with the express aim
of simplifying the EMIR regime to make the compliance burden more
proportionate. We set out below the three key things that
Irish corporates need to know about EMIR Refit.
1. Immediate requirement to calculate the clearing
threshold
EMIR Refit introduces a new method of calculating the clearing
threshold for non-financial counterparties
("NFCs") such as corporates. When
determining whether the clearing thresholds have been exceeded, an
NFC must calculate its aggregate month-end average notional
position in OTC derivatives for the previous 12 months. This
is understood to mean the sum of all positions (for the relevant
class of derivatives) at the end of each month, divided by
12. In calculating the positions NFCs must include all OTC
derivative
