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{{a|eu|}}{{emir}}, better known as “'''{{tag|EMIR}}'''” is the result of a final proposal published by the [[European Commission]] on 15 September 2010, to increase stability within OTC derivative markets.  
{{a|emir|}}{{emir}}, better known as “'''{{tag|EMIR}}'''” is the result of a final proposal published by the [[European Commission]] on 15 September 2010, to increase stability within OTC derivative markets.  
===What {{t|EMIR}} does===
===What {{t|EMIR}} does===
The Regulation introduces:
The Regulation introduces:
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Hedging Exemption3.  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.
Hedging Exemption3.  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.
{{emir hedgine exemption
{{emir hedging exemption}}
===Hedging exemption===
Article {{emirprov|10.3}} provides:
{{quote|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.}}


At the time of the EMIR refit the question arose as to whether this would cover SPVs (such as [[repackaging vehicles]] whose principal activity is to deal in financial instruments. The ESMA Q&A posed this question:
{{quote|Can non-financial counterparties (NFCs) whose core activity is to buy, sell or own financial instruments, benefit from the hedging exemption when using OTC derivative contracts to hedge certain risks, for example risks arising from the potential indirect impact on the value of assets the NFC buys, sells or owns resulting from the fluctuations of interest rates, inflation rates, foreign exchange rates or credit risk?}}
And came forth the asnwer:
{{quote|Yes. The hedging exemption set out in Article 10(3) [[EMIR]] applies to all non-financial counterparties, irrespective of what their core activity is. The list of financial counterparties in Article 2(8) EMIR is a closed list. It does not allow for the treatment of non-financial counterparties as financial counterparties for certain EMIR provisions, such as Article 10(3). That provision itself does not distinguish which non-financial counterparty is allowed to use the hedging exemption depending on that counterparty's specific activity.}}
{{sa}}
{{sa}}


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*[[Financial counterparty]]
*[[Financial counterparty]]
*[[Non-financial counterparty]]
*[[Non-financial counterparty]]
{{ref}}
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