| Guvnor

Status: In Force
Penalty ceiling: Regulated

Does it bind you?

Business-side roles with duties under this instrument.

Financial Services Firm36 Any Person3 Employer2

Plus 2 duties on the regulator, Crown ministers and public bodies — folded into the section list below.

Other Acts binding the same actors

If a role above is yours, these are the other instruments that most often bind it.

Financial Services Firm — also bound by 167 other Acts

Commission Delegated Regulation (EU) No 231/2013 of 19 December 2012 supplementing Directive 2011/61/EU of the European Parliament and of the Council with regard to exemptions, general operating conditions, depositaries, leverage, transparency and supervision (Text with EEA relevance) 63 duties

Friendly Societies Act 1992 52 duties

Commission Delegated Regulation (EU) No 153/2013 of 19 December 2012 supplementing Regulation (EU) No 648/2012 of the European Parliament and of the Council with regard to regulatory technical standards on requirements for central counterparties (Text with EEA relevance) 52 duties

The Financial Services and Markets Act 2000 (Recognition Requirements for Investment Exchanges , Clearing Houses and Central Securities Depositories ) Regulations 2001 50 duties

The Credit Unions (Northern Ireland) Order 1985 43 duties

Any Person — also bound by 2340 other Acts

Human Medicines Regulations 2012 184 duties

Merchant Shipping Act 1995 144 duties

Insolvency (England and Wales) Rules 2016 104 duties

Communications Act 2003 92 duties

Road Traffic Act 1988 92 duties

Employer — also bound by 682 other Acts

The Income Tax (Pay As You Earn) Regulations 2003 241 duties

Provision and Use of Work Equipment Regulations 1998 120 duties

TULRCA 1992 72 duties

Income Tax (Earnings and Pensions) Act 2003 54 duties

Employment Rights (Northern Ireland) Order 1996 (current NI employment law) 53 duties

What it requires

Regulations creating concrete business duties or carrying penalties, grouped as the instrument is structured. Titles link to the source text — blue means you’re leaving for legislation.gov.uk.

s.art004 Financial counterparties that are subject to the clearing obligation Regulated

Notify FCA and clear OTC derivatives if positions exceed thresholdAny Person

s.art008 Access to a trading venue Regulated

Grant CCPs non-discriminatory access to your trading venueFinancial Services Firm

s.art009 Reporting obligation Regulated

Report derivative contract details to a trade repository within one working dayFinancial Services Firm

s.art010 Non-financial counterparties Regulated

Monitor OTC derivative positions and notify FCA if clearing thresholds are exceededAny Person

s.art011 Risk-mitigation techniques for OTC derivative contracts not cleared by a CCP Regulated

Put risk-mitigation procedures in place for non-cleared OTC derivativesFinancial Services Firm

s.art014 Authorisation of a CCP Regulated

Apply for CCP authorisation before providing clearing servicesAny Person

s.art016 Capital requirements Regulated

Maintain minimum capital and risk-based capital reservesFinancial Services Firm

s.art026 General provisions Regulated

Establish robust governance, risk management and compliance arrangementsFinancial Services Firm

s.art027 Senior management and the board Regulated

Appoint a board with independent members and ensure senior management is fit and properFinancial Services Firm

s.art028 Risk committee Regulated

Establish and operate a risk committee with required governance and reportingFinancial Services Firm

s.art029 Record keeping Regulated

Keep records of all activities and contracts for 10 yearsFinancial Services Firm

s.art031 Information to competent authority Regulated

Notify regulator of changes in CCP ownership or managementFinancial Services Firm

s.art033 Conflicts of interest Regulated

Maintain conflict-of-interest management and information safeguardsFinancial Services Firm

s.art034 Business continuity Regulated

Establish and maintain business continuity policy and disaster recovery planFinancial Services Firm

s.art035 Outsourcing Regulated

Oversee outsourced functions and keep full responsibilityFinancial Services Firm

s.art036 General provisions Regulated

Act fairly and professionally toward clearing membersFinancial Services Firm

s.art037 Participation requirements Regulated

Set fair and transparent rules for membership of a central counterpartyFinancial Services Firm

s.art038 Transparency Regulated

CCP and clearing members must publicly disclose prices and feesFinancial Services Firm

s.art039 Segregation and portability Regulated

Segregate client assets and offer choice of segregation levelsFinancial Services Firm

s.art040 Exposure management Regulated

Measure and assess liquidity and credit exposures to clearing members near real-timeFinancial Services Firm

s.art041 Margin requirements Regulated

Impose, call and collect margins to limit credit exposuresFinancial Services Firm

s.art042 Default fund Regulated

Other duties (1) — Crown / regulator

Maintain a default fund to cover member defaultsStatutory regulator

s.art043 Other financial resources Regulated

Maintain pre-funded financial resources to cover losses beyond margin and default fundFinancial Services Firm

s.art044 Liquidity risk controls Regulated

Maintain adequate liquidity and manage liquidity riskEmployer

s.art045 Default waterfall Regulated

Use default waterfall order when a clearing member defaultsFinancial Services Firm

s.art046 Collateral requirements Regulated

Central counterparties must accept only highly liquid collateral and apply adequate haircutsFinancial Services Firm

s.art047 Investment policy Regulated

Invest your CCP's financial resources in highly liquid, low-risk assets onlyFinancial Services Firm

s.art048 Default procedures Regulated

CCP must implement and enforce default proceduresEmployer

s.art049 Review of models, stress testing and back testing Regulated

Regularly test your risk models and parameters with stress tests and back testsFinancial Services Firm

s.art050 Settlement Regulated

Settle transactions using central bank money and state delivery obligationsFinancial Services Firm

s.art050 Calculation of K CCP Regulated

Calculate K_CCP capital requirement and report quarterlyFinancial Services Firm

s.art050 General rules for the calculation of K CCP Regulated

CCPs must calculate KCCP exposure values using specified formulasFinancial Services Firm

s.art050 Reporting of information Regulated

Report financial resources information to clearing membersFinancial Services Firm

s.art050 Calculation of specific items to be reported by the CCP Regulated

Include certain financial resources in default fund reportingFinancial Services Firm

s.art051 Interoperability arrangements Regulated

Provide non-discriminatory access in CCP interoperability arrangementsFinancial Services Firm

s.art052 Risk management Regulated

Manage risks of interoperability arrangements with other CCPsFinancial Services Firm

s.art053 Provision of margins among CCPs Regulated

CCPs must segregate interoperating CCP assets and restrict use of initial marginsFinancial Services Firm

s.art055 Registration of a trade repository Regulated

s.art077 Recognition of trade repositories Regulated

Other duties (1) — Crown / regulator

FCA must decide on trade repository recognition applications within set timeframesStatutory regulator

s.art078 General requirements Regulated

Maintain robust governance and operational arrangements as a trade repositoryFinancial Services Firm

s.art079 Operational reliability Regulated

Manage operational risk, maintain business continuity plan, and plan for orderly substitutionFinancial Services Firm

s.art080 Safeguarding and recording Regulated

Safeguard, record and prevent misuse of derivative transaction dataFinancial Services Firm

s.art081 Transparency and data availability Regulated

Publish aggregate derivatives positions and grant regulators direct data accessFinancial Services Firm

87 other provisions — procedural and definitional

s.art001 Subject matter and scope

s.art002 Definitions

s.art002 Equivalence decisions for the purposes of the definition of OTC derivatives

s.art003 Intragroup transactions

s.art004 Clearing obligation

s.art005 Clearing obligation procedure

s.art006 Public register

s.art006 Suspension of the clearing obligation

s.art006 Risk reduction services

s.art007 Access to a CCP

s.art012 Penalties

s.art013 Mechanism to avoid duplicative or conflicting rules

s.art013 Conditions for making technical standards

s.art015 Extension of activities and services

s.art017 Procedure for granting and refusing authorisation

s.art018 College

s.art019 Opinion of the college

s.art020 Withdrawal of authorisation

s.art021 Review and evaluation

s.art022 Competent authority

s.art023 Cooperation between authorities

s.art023 Supervisory cooperation between competent authorities and ESMA with regards to authorised CCPs

s.art024 Emergency situations

s.art024 CCP Supervisory Committee

s.art024 Consultation of central banks of issue

s.art024 Decision making within the CCP Supervisory Committee

s.art024 Decision making within the Board of Supervisors

s.art024 Accountability

s.art025 Recognition of a third-country CCP

s.art025 Comparable compliance

s.art025 Ongoing compliance with the conditions for recognition

s.art025 Third-country CCP college

s.art025 Fees

s.art025 Exercise of the powers referred to in Articles 25f to 25h

s.art025 Request for information

s.art025 General investigations

s.art025 On-site inspections

s.art025 Procedural rules for taking supervisory measures and imposing fines

s.art025 Fines

s.art025 Periodic penalty payments

s.art025 Hearing of the persons concerned

s.art025 Disclosure, nature, enforcement and allocation of fines and periodic penalty payments

s.art025 Review by the Court of Justice

s.art025 Amendments to Annex IV

s.art025 Withdrawal of recognition

s.art025 Supervisory measures by ESMA

s.art030 Shareholders and members with qualifying holdings

s.art032 Assessment

s.art054 Approval of interoperability arrangements

s.art056 Application for registration

s.art057 Notification of and consultation with competent authorities prior to registration

s.art058 Examination of the application

s.art059 Notification of ESMA decisions relating to registration

s.art060 Exercise of the powers referred to in Articles 61 to 63

s.art061 Request for information

s.art062 General investigations

s.art063 On-site inspections

s.art064 Procedural rules for taking supervisory measures and imposing fines

s.art065 Fines

s.art066 Periodic penalty payments

s.art067 Hearing of the persons concerned

s.art068 Disclosure, nature, enforcement and allocation of fines and periodic penalty payments

s.art069 Review by the Court of Justice

s.art070 Amendments to Annex II

s.art071 Withdrawal of registration

s.art071 Publication and notification of decisions about registration of trade repositories

s.art071 Reference to the Tribunal

s.art072 Supervisory fees

s.art073 Supervisory measures by ESMA

s.art074 Delegation of tasks by ESMA to competent authorities

s.art075 Equivalence ...

s.art076 Cooperation arrangements

s.art076 Mutual direct access to data

s.art082 Exercise of the delegation

s.art083 Professional secrecy

s.art084 Exchange of information

s.art084 Regulations

s.art084 FCA rules

s.art084 Bank of England rules

s.art085 Reports and review

s.art086 Committee procedure

s.art087 Amendment to Directive 98/26/EC

s.art088 Websites

s.art089 Transitional provisions

s.art089 Further transitional provision

s.art090 Staff and resources of ESMA

s.art091 Entry into force

Duty extraction and severity labels are Guvnor’s analysis of the instrument, not the instrument itself. Always verify against the linked source text.

Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (Text with EEA relevance)

Does it bind you?

Other Acts binding the same actors

What it requires