Version in force , Modified +1,312 −0§
Amended by Regulation (EU) No 600/2014 32014R0600 on EUR-Lex (external, EUR-Lex)
dates added to the text: 2014-05-15
Explanation, written by a model and checked against the cited text
Paragraph 1 now adds that non-discriminatory and transparent treatment covers collateral requirements and fees related to access, and it introduces new points (a) and (b) specifying non-discriminatory treatment regarding collateral requirements and netting of economically equivalent contracts, and cross-margining with correlated contracts cleared by the same CCP under a risk model complying with Article 41.
A new paragraph 6 is added stating that the conditions in paragraph 1 on non-discriminatory treatment for collateral requirements, netting of economically equivalent contracts, and cross-margining with correlated contracts are to be further specified by technical standards adopted under Article 35(6)(e) of Regulation (EU) No 600/2014.
The earlier version of Article 7 contained neither this expanded wording in paragraph 1 nor any paragraph 6.
Cited: Art. 7, v2 (external, EUR-Lex) · Art. 7, v1 (external, EUR-Lex)
v1 is the previous version, v2 this one.
Text from EUR-Lex, before and after
Previous version, in force 12 January 2016 02012R0648-20160112 → this version, in force 3 January 2017 02012R0648-20170103
Article 7 Access to a CCP 1. A CCP that has been authorised to clear OTC derivative contracts shall accept clearing such contracts on a non-discriminatory and transparent basis, including as regards collateral requirements and fees related to access, regardless of the trading venue. This in particular shall ensure that a trading venue has the right to non-discriminatory treatment in terms of how contracts traded on that trading venue are treated in terms of: (a) collateral requirements and netting of economically equivalent contracts, where the inclusion of such contracts in the close-out and other netting procedures of a CCP based on the applicable insolvency law would not endanger the smooth and orderly functioning, the validity or enforceability of such procedures; and (b) cross-margining with correlated contracts cleared by the same CCP under a risk model that complies with Article 41. A CCP may require that a trading venue comply with the operational and technical requirements established by the CCP, including the risk-management requirements. 2. A CCP shall accede to or refuse a formal request for access by a trading venue within three months of such a request. 3. Where a CCP refuses access under paragraph 2, it shall provide the trading venue with full reasons for such refusal. 4. Save where the competent authority of the trading venue and that of the CCP refuse access, the CCP shall, subject to the second subparagraph, grant access within three months of a decision acceding to the trading venue’s formal request in accordance with paragraph 2. The competent authority of the trading venue and that of the CCP may refuse access to the CCP following a formal request by the trading venue only where such access would threaten the smooth and orderly functioning of the markets or would adversely affect systemic risk. 5. ESMA shall settle any dispute arising from a disagreement between competent authorities in accordance with its powers under Article 19 of Regulation (EU) No 1095/2010.6. The conditions laid down in paragraph 1 regarding non-discriminatory treatment in terms of how contracts traded on that trading venue are treated in terms of collateral requirements and netting of economically equivalent contracts and cross-margining with correlated contracts cleared by the same CCP shall be further specified by the technical standards adopted pursuant to Article 35(6)(e) of Regulation (EU) No 600/2014 Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012 (OJ L 173, 12.6.2014, p. 84)..