(11)Pursuant to the Policy Manual, variation margin must be exchanged and initial margin must be posted and collected for all new non-centrally cleared derivative transactions, with the exception of physically settled FX forwards and swaps, FX transactions embedded in cross-currency swaps associated with the exchange of principal, physically settled commodity forwards, and until further notice, non-centrally cleared single-stock options, equity basket options and equity index options, between an AI and a covered entity according to the internationally agreed phase-in which thresholds expressed in HKD should be considered equivalent to the thresholds used in Delegated Regulation (EU) 2016/2251. Similar exemptions for physically settled FX forwards and swaps and for single-stock equity options or index options are provided for in Articles 37 and 38 of Delegated Regulation (EU) 2016/2251. This Decision should therefore only apply to OTC derivatives contracts that are subject to margin requirements under Regulation (EU) No 648/2012 and the Policy Manual.