ESRB has published its responses to the advice the European Securities and Markets Authority (ESMA) requested under articles 10(4) and 46(3) of the Regulation on OTC derivatives, central counterparties (CCPs) and trade repositories (EMIR). Regarding the use of OTC derivatives by non-financial corporations in commercial and treasury hedging, ESRB says these activities are not risk-free and should be included in the calculation of the threshold above which a clearing obligation arises. ESRB also says it is better for non-financial corporations to clear their derivatives through CCPs rather than resorting to banks in exchange for a fee. On eligibility of collateral for CCPs, ESRB calls for a high degree of certainty around collateral transferability and haircut practices that are designed to limit procyclicality, but without compromising CCP resilience. (Source: ESRB Advice on the use of OTC derivatives by non-financial corporations and Macro-prudential Stance, and ESRB Advice on Eligible Collateral for Central Counterparties and Macro-prudential Stance)