EBU Single Rulebook Q&A 17 January 2019 2019_4465 Application of Article 254(2) to derivative exposures

Is new Article 254(2) CRR applicable to derivatives positions to hedge market risk? Article 254(2) CRR2 states that in case the SEC-IRBA is not applicable, and if the conditions (a) (b) or (c) of art 254(2) are fulfilled the SEC-ERBA shall be used instead of the SEC-SA for “rated positions or positions in respect of which an inferred rating may be used”.