Regulatory Alerts2021-06-02
Added · Updated
Commission Delegated Regulation (EU) 2021/1456 on fair, reasonable, non-discriminatory and transparent clearing terms for OTC derivatives
The European Commission specifies the conditions under which commercial terms for clearing services for OTC derivatives are considered fair, reasonable, non-discriminatory, and transparent. This Regulation applies to clearing service providers in the Union regarding OTC derivative contracts subject to the clearing obligation, requiring them to disclose onboarding processes, use standardized request forms, and base fees on objective criteria. Providers must conduct risk assessments using specific criteria, provide written reasons for refusals or suspensions, and allow a minimum six-month notice period for contract termination or material changes. Existing commercial terms agreed before 9 September 2021 must be reviewed and modified to meet these requirements by 9 September 2022.