ESMA_QA_1912

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1912

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Regulatory Context

Regulation : SSR

Level 1 Regulation: Short Selling Regulation (SSR) Regulation (EU) No 236/2012

Level 2 Regulation: No information available

Level 3 Regulation: No information available

Topic: Determination of net short position

Subject Matter: Interest rate swaps

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Question

Submission Date: 10 October 2012

Can a short position in sovereign debt be offset against an interest rate swap trade? (For example, Sell 10 year German Bund and receive Fixed (pay floating) 10 year interest rate swap denominated in Euro)

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ESMA Answer

Answer Date: 10-10-2012

[ESMA70-145-408 SSR Q&A, Q&A 6.7] No. An interest rate swap is not per se an instrument related to the concerned sovereign debt in the meaning of Article 8(2) of the Regulation unlike derivative instruments on the sovereign debt itself.

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This document was automatically extracted from the ESMA EMIR Q&A database.