Division 1 For the purposes of Article 47(1) of Regulation (EU) No 648/2012, financial instruments can be considered highly liquid financial instruments, bearing minimal credit and market risk if they are debt instruments meeting each of the following conditions:

they are issued or explicitly guaranteed by:

1. (i)

   a government;

2. (ii)

   a central bank;

3. (iii)

   a multilateral development bank as listed under Section 4.2 of Part 1 of Annex VI to Directive 2006/48/EC;

4. (iv)

   the European Financial Stability Facility or the European Stability Mechanism where applicable;

the CCP can demonstrate that they have low credit and market risk based upon an internal assessment by the CCP. In performing such assessment the CCP shall employ a defined and objective methodology that shall not fully rely on external opinions and that takes into consideration the risk arising from the establishment of the issuer in a particular country;

the average time-to-maturity of the CCP’s portfolio does not exceed two years;

they are denominated in one of the following currencies:

1. (i)

   a currency the risks of which the CCP can demonstrate that it is able to manage; or

2. (ii)

   a currency in which the CCP clears transactions, in the limit of the collateral received in that currency;

they are freely transferable and without any regulatory constraint or third party claims that impair liquidation;

they have an active outright sale or repurchase agreement market, with a diverse group of buyers and sellers, including in stressed conditions and to which the CCP has reliable access;

reliable price data on these instruments are published on a regular basis.