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Text as of 27 Jul 2012 · Original act (Official Journal of 27 July 2012) · The wording differs from today’s text.Today’s text

Article 10 — Non-financial counterparties

Financial servicesLevel 1RegulationEMIRStage: AdoptedVerifiedOfficial source

10(1)

1.Where a non-financial counterparty takes positions in OTC derivative contracts and those positions exceed the clearing threshold as specified under paragraph 3, that non-financial counterparty shall:

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10(1)(a)
(a)immediately notify ESMA and the competent authority referred to in paragraph 5 thereof;
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10(1)(b)
(b)become subject to the clearing obligation for future contracts in accordance with Article 4 if the rolling average position over 30 working days exceeds the threshold; and
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10(1)(c)
(c)clear all relevant future contracts within four months of becoming subject to the clearing obligation.
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10(2)

2.A non-financial counterparty that has become subject to the clearing obligation in accordance with paragraph 1(b) and that subsequently demonstrates to the authority designated in accordance with paragraph 5 that its rolling average position over 30 working days does not exceed the clearing threshold, shall no longer be subject to the clearing obligation set out in Article 4.

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10(3)

3.In calculating the positions referred to in paragraph 1, the non-financial counterparty shall include all the OTC derivative contracts entered into by the non-financial counterparty or by other non-financial entities within the group to which the non-financial counterparty belongs, which are not objectively measurable as reducing risks directly relating to the commercial activity or treasury financing activity of the non-financial counterparty or of that group.

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10(4)

4.In order to ensure consistent application of this Article, ESMA shall develop draft regulatory technical standards, after consulting the ESRB and other relevant authorities, specifying:

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10(4)(a)
(a)criteria for establishing which OTC derivative contracts are objectively measurable as reducing risks directly relating to the commercial activity or treasury financing activity referred to in paragraph 3; and
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10(4)(b)
(b)values of the clearing thresholds, which are determined taking into account the systemic relevance of the sum of net positions and exposures per counterparty and per class of OTC derivatives.
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After conducting an open public consultation, ESMA shall submit those draft regulatory technical standards to the Commission by 30 September 2012.

Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.

After consulting the ESRB and other relevant authorities, ESMA shall periodically review the thresholds and, where necessary, propose regulatory technical standards to amend them.

10(5)

5.Each Member State shall designate an authority responsible for ensuring that the obligation under paragraph 1 is met.

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