EBU Single Rulebook Q&A 17 December 2013 2013_666 Potential Future Exposure (PFE) add-ons for written options

Please confirm that for the purposes of the Mark-to-Market method under Article 274, no potential future exposure (PFE) add-ons should be taken for written options. This is because for written options there is no possibility of replacement costs becoming positive before maturity, and therefore an add-on is not necessary. From an economic point of view there is no counterparty risk.