FCA: some energy firms botched key Emir test

Review finds “mixed bag” when counting trades towards clearing threshold

FCA headquarters

A review of oil and gas firms by the UK's Financial Conduct Authority (FCA) has found some were not correctly classifying hedges and speculative trades – a key task that will determine whether non-financial counterparties (NFCs) are required to clear their over-the-counter derivatives under the European Market Infrastructure Regulation (Emir).

Hedges do not count towards the three thresholds that separate an NFC-minus from an NFC-plus – the latter are treated as financial counterparties and have

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