ESMA_QA_1912
10/10/2012
Subject Matter
Interest rate swaps
Original question
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)
(For example, Sell 10 year German Bund and receive Fixed (pay floating) 10 year interest rate swap denominated in Euro)
ESMA Answer
10-10-2012
Original language
[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.
Status: Answer Published
Additional Information
Level 1 Regulation
Short Selling Regulation (SSR) Regulation (EU) No 236/2012
Topic
Determination of net short position