(9)In accordance with paragraph 11 of Prudential Standard CPS 226, obligations to exchange variation margin are only applicable to counterparties to a transaction where the amount of non-centrally cleared derivatives of both counterparties exceeds, on an aggregated and consolidated basis, a de minimis threshold of AUD 3 billion. No such threshold exists under Regulation (EU) No 648/2012. Recognition of equivalence should therefore be conditional on the exchange of variation margin between counterparties subject to Article 11 of Regulation (EU) No 648/2012 and APRA covered entities.