Regulation 20 Non-financial counterparties

Article 10 is amended as follows.

In paragraph 1, in point (a)—

In paragraph 2 for “authority designated in accordance with paragraph 5” substitute “FCA”.

For paragraph 4 substitute—

“4.

The FCA may make technical standards specifying:

(a)

criteria for establishing which OTC derivative contracts are objectively measurable as reducing risks directly relating to the commercial activity or treasury financing activity referred to in paragraph 3; and

(b)

values of the clearing thresholds, which are determined taking into account the systemic relevance of the sum of net positions and exposures per counterparty and per class of OTC derivatives.

The FCA shall periodically review the thresholds specified under point (b) and, where necessary, make technical standards to amend them.”.

For paragraph 5 substitute—

“5.

The authority responsible for ensuring that the obligation under paragraph 1 is met is the FCA.”.