Division 136 F1

The allocation of a transaction as ‘ OTC ’ or ‘ Organized market ’ shall be based on the nature of the market where the transaction takes place and not on whether there is a mandatory clearing obligation for that transaction. An ‘ Organised market ’ is a regulated market in the meaning of point (92) of Article 4(1) CRR. Therefore, where a reporting entity enters into a derivative contract in an OTC market where central clearing is compulsory, it shall classify that derivative as ‘ OTC ’ and not as ‘ Organised market ’ .