Regulatory Alerts2023-06-14 | Circular 6/2023Added · Updated
Circular 6/2023 — Modifications to Circular 4/2012
The document amends the Rules for the Execution of Derivative Operations to expand the types of counterparties with which credit institutions may execute credit derivatives, specifically allowing transactions with brokerage houses, investment funds, foreign hedge funds, specialized retirement fund investment societies, insurance institutions, and other institutional investors. It updates definitions for terms such as Credit Default Swaps, Total Return Swaps, Hedge Funds, and Insurance Institutions, while deleting obsolete definitions like Risk Asset and Credit Risk. The circular also imposes LEI code requirements on entities, funds, warehouses, Sofomes, and insurance institutions and restricts Sofomes, warehouses, and insurance institutions to executing derivatives solely for hedging their own risks.
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