# Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (Text with EEA relevance), Article 16: Capital requirements

Extent: E+W+S+N.I.

1. A CCP shall have a permanent and available initial capital of at least EUR 7,5 million to be authorised pursuant to Article 14.
2. A CCP’s capital, including retained earnings and reserves, shall be proportionate to the risk stemming from the activities of the CCP. It shall at all times be sufficient to ensure an orderly winding-down or restructuring of the activities over an appropriate time span and an adequate protection of the CCP against credit, counterparty, market, operational, legal and business risks which are not already covered by specific financial resources as referred to in Articles 41 to 44.
3. The Bank of England may make technical standards specifying requirements regarding the capital, retained earnings and reserves of a CCP referred to in paragraph 2.
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Source: https://www.legislation.gov.uk/eur/2012/648/article/16 (the official version)
Page: https://openlegislation.uk/eu-regulation-2012-648/article-16
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.