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CHAPTER II SPECIFIC PROVISIONS ON RISK MANAGEMENT PROCEDURES

SECTION 1 Exemptions

Article 23 CCPs

By way of derogation from Article 2(2), counterparties may provide in their risk management procedures that no collateral is exchanged in relation to non-centrally cleared OTC derivative contracts entered into with CCPs provided:1

  1. (a) such CCPs are recognised by the Bank of England pursuant to Article 25 of Regulation (EU) No 648/2012 or by recognition order pursuant to Section 290 of the Financial Services and Markets Act 2000; and1

  2. (b) such contracts are in respect of an activity which is carried on for the purposes of, or in connection with, the services or activities specified in the CCP’s recognition by the Bank of England pursuant to Article 25 of Regulation (EU) No 648/2012 or the CCP’s recognition order pursuant to Section 290 of the Financial Services and Markets Act 2000.1