November 21, 2017

EC published the Commission Delegated Regulations (CDRs) 2017/2154 and 2017/2155, which are focused on regulatory technical standards on indirect clearing arrangements. CDR 2017/2154 supplements Markets in Financial Instruments Regulation (MiFIR or Regulation (EU) No 600/2014) and CDR 2017/2155 amends Delegated Regulation (EU) No 149/2013, with regard to regulatory standards on indirect clearing arrangements. Both CDRs shall enter into force on the twentieth day following that of their publication in the Official Journal of the European Union. These regulations shall apply from January 03, 2018.

Indirect clearing arrangements may give rise to specific risks. It is, therefore, necessary that all the parties participating in indirect clearing arrangements—including clearing members and central counterparties (CCPs)—identify, monitor, and manage any material risks arising from such arrangements on an ongoing basis. In such cases, appropriate sharing of information between clients and clearing members is especially important. Clearing members should, however, ensure that this information is only used for risk management and "margining" purposes and that commercially sensitive information is not misused. Commission Delegated Regulation (EU) No 149/2013 was amended as follows:

  • Point (b) has been replaced in Article 1
  • Points (d) and (e) have been inserted in Article 1
  • Articles 2, 3, 4, and 5 have been replaced
  • Articles 5a and 5b have been inserted

 

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Effective Date: December 11, 2017

Keywords: Europe, EU, Securities, CCP, MiFIR, Indirect Clearing Arrangements, CDR 2017/2155, CDR 2017/2154, EC