<!-- headlesslaw {"release":{"id":"a4f2a0495fe55b47323883f82977a9b34ab66171ec9623e39925d3a7045b6c81","published":"2026-11-01T16:41:30Z","pinned":false},"limits":{"coverage":{"history":"current_only","held_since":"2022-09-23","gaps":[],"covered":["ESMA Q&A 1311 — Q&A — Calculation of denominator [Answer Published] L3"],"not_covered":["national guidance","court decisions"]},"freshness":{"release_id":"a4f2a0495fe55b47323883f82977a9b34ab66171ec9623e39925d3a7045b6c81","release_published":"2026-11-01T16:41:30Z","checked_at":"2026-10-26","checked_against":"the ESMA publication"},"truncation":null,"failures":[],"incomplete":[]},"page":{"path":"/mifid-ii/level-3/q-and-a/esma/esma-qa-1311-calculation-of-denominator","url":"https://www.headlesslaw.com/mifid-ii/level-3/q-and-a/esma/esma-qa-1311-calculation-of-denominator","title":"ESMA Q&A 1311 — Q&A — Calculation of denominator [Answer Published]","family":"l3","work_id":"spaces/mifid-ii/level-3/q-and-a/esma/esma-qa-1311-calculation-of-denominator","status":"answer published","force_status":null,"date_state":"current","requested_date":null,"as_of":"2026-11-02","applies_from":null,"application":null,"version_label":"ESMA Q&A register, 23 September 2022","check":{"against":"the ESMA publication","on":"2026-10-26"},"check_result":"matched","official_url":"https://www.esma.europa.eu/publications-data/questions-answers/1311","valid_from":"0001-01-01","valid_until":null,"revision":1,"content_id":"c5c35efb9e1f51bb","change_date":null,"nearest_versions":["2022-09-23"],"first_text_date":null,"correction_applies":false,"versions":["2022-09-23"],"version_url":"https://www.headlesslaw.com/mifid-ii/level-3/q-and-a/esma/esma-qa-1311-calculation-of-denominator/versions/2022-09-23","revision_url":"https://www.headlesslaw.com/mifid-ii/level-3/q-and-a/esma/esma-qa-1311-calculation-of-denominator/versions/2022-09-23/rev/c5c35efb9e1f51bb","versions_url":"https://www.headlesslaw.com/mifid-ii/level-3/q-and-a/esma/esma-qa-1311-calculation-of-denominator/versions","relations_url":"https://www.headlesslaw.com/mifid-ii/level-3/q-and-a/esma/esma-qa-1311-calculation-of-denominator/relations","source_line":"Answer by ESMA, published in its Q&A tool · not legislation · published 23 Sep 2022 [Answer Published]","attribution":{"prepared_by":"ESMA","published_by":"ESMA","published_in":"ESMA Q&A tool","document_type":"qa_answer","legal_nature":"not_legislation","addressees":"not stated in the document","dates":{"published_on":"2022-09-23","question_submitted_on":"2022-09-23","locators":{"published_on":"ESMA Q&A Excel export ESMA_QA_1311, column 'Esma responses', date line","question_submitted_on":"ESMA Q&A Excel export ESMA_QA_1311, column 'Date of submission'"}},"adoption":null}}} -->
---
title: "ESMA Q&A 1311 — Q&A — Calculation of denominator [Answer Published]"
shortTitle: "ESMA Q&A 1311 — Q&A — Calculation of denominator [Answer Published]"
answer_id: ESMA_QA_1311
topic: "Ancillary activity"
status: "Answer Published"
type: qa
instrument_type: qa
authority: ESMA
binding: false
binding_character: non_binding
legal_status: in_force
regulation: "MiFID II"
mifid_level3: true
mica_level2: false
legal_basis: "MiFID II"
date: 23 September 2022
source_link: https://www.esma.europa.eu/publications-data/questions-answers/1311
lifecycle: "Answer Published"
text_version: "ESMA Q&A register, 23 September 2022"
source_url: "https://www.esma.europa.eu/publications-data/questions-answers/1311"
check_status: matched
verified: true
last_checked: 2026-10-26
checked_against: "the ESMA publication"
source:
  prepared_by: "ESMA"
  published_by: "ESMA"
  published_in: "ESMA Q&A tool"
  evidence:
    prepared_by: "ESMA Answer"
    locator: "ESMA Q&A entry ESMA_QA_1311: field 'ESMA Answer', no 'Answer provided by' line"
document_type: "qa_answer"
legal_nature: "not_legislation"
addressees: "not stated in the document"
dates:
  published_on: "2022-09-23"
  question_submitted_on: "2022-09-23"
  locators:
    published_on: "ESMA Q&A Excel export ESMA_QA_1311, column 'Esma responses', date line"
    question_submitted_on: "ESMA Q&A Excel export ESMA_QA_1311, column 'Date of submission'"
lifecycle_label: "Answer Published"
---

**Answer by ESMA, published in its Q&A tool · not legislation · published 23 Sep 2022 [Answer Published]**

*Answer Published · ESMA Q&A register, 23 September 2022 · Checked against the ESMA publication on 26 Oct 2026 · [Official source](https://www.esma.europa.eu/publications-data/questions-answers/1311)*

| | |
|---|---|
| **Full title** | ESMA Q&A 1311 — Q&A — Calculation of denominator \[Answer Published\] |
| **Prepared by** | ESMA |
| **Published by** | ESMA, in the ESMA Q&A tool |
| **Reference** | ESMA_QA_1311 |
| **Document type** | Q&A |
| **Legal nature** | Not legislation |
| **Addressees** | Not stated in the document |
| **Dates** | Published 23 September 2022; question submitted 23 September 2022 |
| **Legal basis** | MiFID II |
| **Related instruments** | None recorded |
| **Text on this page** | Word for word — the full text of the ESMA publication |

**Calculation of denominator**

### Question

Should the denominator in the capital employed test under Article 5(4) of CDR 2021/1833 be calculated using consolidated accounts? Should firms use capital on a worldwide basis or just capital employed within the EU?

***

### Answer

\[ESMA70-872942901 Commodity derivatives, Ancillary services, Q&A 10\]

The CDR 2021/1833 RTS 20 capital employed test should be calculated using consolidated accounts. According to Article 5(4) of CDR 2021/1833, the capital employed for carrying out the main business of a group shall be the sum of the total assets of the group minus its short-term debt as recorded in the consolidated financial statements of the group at the end of the relevant annual calculation period.

Firms shall use capital employed on a worldwide basis when calculating the capital test.

***

**Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/1311)