Look at the
actual words used
What is their ordinary and natural meaning?
What is the background and context?
Apply any specific interpretation
Judicial interpretation, e.g., "best endeavours"
Special scientific or technical meaning
If the meaning is still unclear
If two rival constructions, which makes the most commercial sense?
Can a term be implied?
- Reasonable and equitable
- Obvious
- Necessary to provide
business efficacy
- Does not conflict with
express terms
- Capable of clear expression
Am I in scope of the EMIR clearing obligation?
• aggregate month-end average positions over previous 12 month • group-wide calculation (note NFC exemptions)
1
Does my total trading of AAR in-scope transactions exceed €3bn (individually or in aggregate)?
2
• aggregate month-end average positions over previous 12 months • group-wide for EU-consolidated groups • exclude intragroup transactions
In scope of AAR
• Notify NCA and ESMA • Reporting requirements apply
Does my total trading of AAR in-scope transactions exceed €3bn (individually or in aggregate)?
3
• aggregate month-end average positions over previous 12 months • group-wide for EU-consolidated groups • exclude intragroup transactions
• calculate on aggregate across all in-scope transactions (not individually)
Exempt from operational requirement
Operational requirement applies
Establish account with EU CCP by 25 June 2025
Is my notional amount of outstanding cleared transactions under €6bn?
4
• aggregate month-end average positions over previous 12 months • group-wide for EU-consolidated groups • calculate on aggregate across all in-scope transactions (not individually)
Exempt from representativeness requirement
Representativeness requirement applies
Not in scope of AAR
Not in scope of AAR
No
No
No
No
Yes
Yes
Yes
Yes