Energy firms find Emir thresholds too close for comfort

The European Market Infrastructure Regulation will force non-financial counterparties to clear trades in over-the-counter derivatives once they reach a set of notional thresholds. And despite their original expectations, many energy companies could be closer than they think. Stella Farrington reports

When the European Market Infrastructure Regulation (Emir) came into force in August 2012, many energy companies assumed they would be exempt from requirements to centrally clear over-the-counter derivatives. But with implementation drawing closer, experts warn many energy firms are likely to fall foul of a system of notional thresholds that trigger the need for non-financial counterparties (NFCs) to clear their trades. That could have far-reaching implications, warn market participants, with