MAR 7A.5 Requirements when acting as a general clearing member

1This section applies to a firm which provides the service of acting as a general clearing member.

A firm must:

1. (1)

   have clear criteria as to the suitability requirements of persons to whom clearing services will be provided;

2. (2)

   apply those criteria;

3. (3)

   impose requirements on the persons to whom clearing services are being provided to reduce risks to the firm and to the market; and

4. (4)

   have a binding written agreement with any person to whom it is providing clearing services, detailing the essential rights and obligations of both parties arising from the provision of the services.

[Note: article 17(6) of MiFID and MiFID RTS 6 specifying the organisational requirements of investment firms acting as general clearing members]