[Netting/collateral/CCP/305/IAS 32]

Under MiFIR Article 29(2) and as further specified in Article 2 of the Commission Delegated Regulation (EU) 2017/582 of 29 June 2016 supplementing Regulation (EU) No 600/2014 of the European Parliament and of the Council with regard to regulatory technical standards specifying the obligation to clear derivatives traded on regulated markets and timing of acceptance for clearing (the ‘Regulation’) with the working title ‘RTS 26’, there is a requirement on trading venues and clearing members to subject orders for on-venue traded derivatives to pre-trade checks on an order-by-order basis, unless the three conditions set out in Article 2(1) of the Regulation have been met. FIA engaged external counsel, Linklaters LLP, to review the rulebooks of 26 European exchanges and 16 CCPs to confirm whether they meet the exemption criteria to negate the need for clearing firms and exchanges to create pre-trade order-by-order credit checks. This project has been limited to on-venue traded derivatives executed subject to the trading venue rules and does not cover compliance with other requirements of the Regulation, such us the requirements for bilaterally concluded and centrally cleared OTC derivatives.

NCCL = No Change Confirmation Letter

BD = Brief Description

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