{
  "url": "https://openlegislation.uk/eu-regulation-2018-728/article-2",
  "json_url": "https://openlegislation.uk/eu-regulation-2018-728/article-2.json",
  "legislation": "eur/2018/728",
  "legislation_title": "Commission Delegated Regulation (EU) 2018/728 of 24 January 2018 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for procedures for excluding transactions with non-financial counterparties established in a third country from the own funds requirement for credit valuation adjustment risk (Text with EEA relevance)",
  "legislation_url": "https://openlegislation.uk/eu-regulation-2018-728",
  "path": "article/2",
  "kind": "article",
  "number": "2",
  "heading": null,
  "text": "1. For the purpose of excluding transactions with a non-financial counterparty established in a third country from the own funds requirements for CVA risk in accordance with point (a) of Article 382(4) of Regulation (EU) No 575/2013, institutions shall verify, for each class of OTC derivative contracts referred to in Article 11 of Delegated Regulation (EU) No 149/2013, that the gross notional value of the OTC derivative contracts of that non-financial counterparty within that class does not exceed the relevant clearing threshold referred to in Article 11 of that Regulation.\n2. Institutions shall carry out the verification referred to in paragraph 1 in one of the following cases:\n(a) at the inception of each new trade with that counterparty;\n(b) on a periodic basis.\n3. For the purpose of point (b) of paragraph 2, the periodic verification shall be performed in accordance with one of the following frequencies:\n(a) on an annual basis;\n(b) on a quarterly basis, where for any of the classes of OTC derivatives the gross notional value of OTC derivatives transactions of the non-financial counterparty established in a third country is greater than 75 % of the clearing threshold value for that class referred to in Article 11 of Delegated Regulation (EU) No 149/2013.\n4. Institutions shall substantiate their opinion that, for each class of OTC derivatives contracts referred to in Article 11 of Delegated Regulation (EU) No 149/2013, the gross notional value of the OTC derivative contracts of a non-financial counterparty established in a third country, for that class, does not exceed the corresponding clearing threshold referred to in that Article.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/eur/2018/728/article/2",
    "retrieved_at": "2026-11-01T14:44:08.178190+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}