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No. 981/2023

8 September 2023

RULES

on derivatives and central clearing for financial instruments.

Article 1 Scope.

These rules apply to the further implementation of Act No. 115/2021 on markets for financial instruments with regard to:

• Application of position limits on commodity derivatives, pursuant to Articles 98, 99 and 100 of the Act.

• Format of position reports, pursuant to Articles 102 and 103 of the Act.

• Direct, substantial and foreseeable effects of derivative contracts within the EEA and those cases where the trading obligation is necessary to prevent rules and obligations from being circumvented, pursuant to Article 28. MiFIR.

• The trading obligation pursuant to Articles 28 and 32. MiFIR.

• Criteria for determining whether derivatives subject to the clearing obligation should be subject to the trading obligation, pursuant to Articles 28 and 32. MiFIR.

• Specification of the clearing obligation for derivatives traded on a regulated market and the timeframe for acceptance of clearing, pursuant to Article 29. MiFIR.

• Indirect clearing arrangements, pursuant to Article 30. MiFIR.

• Clearing access for trading venues and central counterparties, pursuant to Articles 35 and 36. MiFIR.

• Access to benchmarks, pursuant to Article 37. MiFIR.

Article 2 References.

Reinsurance undertaking authorised in accordance with Directive 2005/68/EC: References in these rules to a reinsurance undertaking authorised in accordance with Directive 2005/68/EC shall be understood as references to an insurance undertaking authorised for reinsurance pursuant to Act No. 100/2016 on insurance activities.

Commodity derivatives pursuant to point 10 of Section C of Annex I to MiFID II: References in these rules to commodity derivatives as defined in point 10 of Section C of Annex I to Directive 2014/65/EU shall be understood as references to commodity derivatives pursuant to point (g) of item 2 of the first paragraph of Article 4 of Act No. 115/2021 on markets for financial instruments.

Commodity derivatives pursuant to point (c) of item 44 of the first paragraph of Article 4. MiFID II: References in these rules to commodity derivatives as defined in point (c) of item 44 of the first paragraph of Article 4 of Directive 2014/65/EU shall be understood as references to commodity derivatives pursuant to point (c) of item 64 of the first paragraph of Article 4 of Act No. 115/2021 on markets for financial instruments.

Credit institution authorised in accordance with CRD IV: References in these rules to a credit institution authorised in accordance with Directive 2013/36/EU shall be understood as references to a credit institution authorised pursuant to Act No. 161/2002 on financial undertakings.

Minimum capital requirements pursuant to point (f) of the first paragraph of Article 47. MiFID II: References in these rules to minimum capital requirements pursuant to point (f) of the first paragraph of Article 47 of Directive 2014/65/EU of the European Parliament and of the Council shall be understood as references to minimum share capital pursuant to item 6 of the first paragraph of Article 78 of Act No. 115/2021 on markets for financial instruments.

Occupational pension fund authorised in accordance with Directive 2003/41/EC: References in these rules to an institution for occupational retirement provision within the meaning of point (a) of Article 6 of Directive 2003/41/EC shall be understood as references to a pension fund authorised pursuant to Act No. 78/2007 on occupational pension funds.

Life insurance undertaking authorised in accordance with Directive 2002/83/EC: References in these rules to a life insurance undertaking authorised in accordance with Directive 2002/83/EC shall be understood as a reference to an insurance undertaking authorised for life and health insurance pursuant to Act No. 100/2016 on insurance activities.

Market operators and investment firms referred to in the first paragraph of Article 58. MiFID II: References in these rules to market operators and investment firms referred to in the first paragraph of Article 58 of Directive 2014/65/EU shall be understood as references to market operators and investment firms referred to in the first paragraph of Article 102 of Act No. 115/2021 on markets for financial instruments.

Operators pursuant to Directive 2003/87/EC: References in these rules to operators that must comply with requirements pursuant to Directive 2003/87/EC shall be understood as references to operators that must comply with requirements pursuant to Act No. 70/2012 on climate matters.

Setting of position limits for commodity derivative contracts pursuant to the fourth paragraph of Article 57. MiFID II: References in these rules to the setting of position limits for commodity derivative contracts referred to in the fourth paragraph of Article 57 of Directive 2014/65/EU shall be understood as references to the setting of position limits pursuant to Article 98 of Act No. 115/2021 on markets for financial instruments.

Specialised fund pursuant to AIFMD: References in these rules to a specialised fund (AIF) managed by an alternative investment fund manager that is authorised or registered in accordance with Directive 2011/61/EU shall be understood as references to a specialised fund (AIF) managed by an alternative investment fund manager that is authorised or registered pursuant to Act No. 45/2020 on alternative investment fund managers.

Institution for occupational retirement provision: References in these rules to institutions for occupational retirement provision within the meaning of point 1 of Article 6 of Directive (EU) 2016/2341 shall be understood as references to an occupational pension fund pursuant to Act No. 78/2007 on occupational pension funds.

Directive 98/26/EC: References in these rules to Directive 98/26/EC shall be understood as references to Act No. 90/1999 on the finality of settlement in payment systems and securities settlement systems.

Notifications pursuant to Article 58. MiFID II: References in these rules to notifications referred to in Article 58 of Directive 2014/65/EU shall be understood as notifications pursuant to Articles 102 and 103 of Act No. 115/2021 on markets for financial instruments.

Exemption pursuant to the first paragraph of Article 57. MiFID II: References in these rules to the exemption referred to in the second subparagraph of the first paragraph of Article 57 of Directive 2014/65/EU, for which a non-financial entity with a position in a commodity derivative that is considered to reduce risk shall apply, shall be understood as references to the exemption pursuant to the second paragraph of Article 98 of Act No. 115/2021 on markets for financial instruments.

Insurance undertaking authorised in accordance with Directive 73/239/EEC: References in these rules to an insurance undertaking authorised in accordance with Directive 73/239/EEC shall be understood as references to an insurance undertaking authorised for non-life insurance pursuant to Act No. 100/2016 on insurance activities.

Investment firm authorised in accordance with MiFID II: References in these rules to an investment firm authorised in accordance with Directive 2014/65/EU shall be understood as references to an investment firm authorised pursuant to Act No. 115/2021 on markets for financial instruments.

Investment firms that are market makers in accordance with point 7 of the first paragraph of Article 4. MiFID II: References in these rules to investment firms that are market makers in accordance with point 7 of the first paragraph of Article 4 of Directive 2014/65/EU shall be understood as references to investment firms that are market makers pursuant to point 67 of the first paragraph of Article 4 of Act No. 115/2021 on markets for financial instruments.

UCITS authorised in accordance with UCITS: References in these rules to a UCITS and its management company authorised in accordance with Directive 2009/65/EC shall be understood as references to a UCITS and its management company authorised pursuant to Act No. 116/2021 on UCITS.

Market makers: References in these rules to market makers shall be understood as references to market makers pursuant to the first paragraph of Article 4 of Act No. 115/2021 on markets for financial instruments.

Transactions to fulfil obligations to provide liquidity in a commodity on a trading venue: References in these rules to transactions made to fulfil obligations to provide liquidity in a commodity derivative on a trading venue as referred to in point (c) of the fourth subparagraph of the fourth paragraph of Article 2 of Directive 2014/65/EU shall be understood as transactions in commodity derivatives or emission allowances, or derivatives thereof, entered into for the purpose of fulfilling an obligation to provide liquidity on a trading venue, where such an obligation is required by competent authorities in accordance with law or administrative provisions or by trading venues.

Article 3. Implementation of regulations.

By these rules, the following Commission regulations (EU) shall enter into force in this country, as published in the EEA Supplement to the Official Journal of the European Union No. 72 of 11 November 2021, pp. 248-260 and 273-279, No. 78 of 9 December 2021, pp. 1-9, 20-23 and 364-380, No. 16 of 10 March 2022, pp. 6-11, No. 20 of 24 March 2022 pp. 19-20 and No. 26 of 21 April 2022 pp. 287-297, cf. Decision of the Joint EEA Committee No. 85/2019 which is published in the EEA Supplement to the Official Journal of the European Union No. 88 of 31 October 2019, cf. also Protocol 1 on horizontal adaptation to the Agreement on the European Economic Area, cf. the Act on the European Economic Area, No. 2/1993, in which the Protocol is incorporated into law:

• Commission Delegated Regulation (EU) 2016/2020 of 26 May 2016 supplementing Regulation (EU) No. 600/2014 of the European Parliament and of the Council on markets in financial instruments with regard to regulatory technical standards on criteria for determining whether derivatives subject to the clearing obligation should be subject to the trading obligation.

• Commission Delegated Regulation (EU) 2016/2021 of 2 June 2016 supplementing Regulation (EU) No. 600/2014 of the European Parliament and of the Council on markets in financial instruments with regard to regulatory technical standards on access to benchmarks.

• Commission Delegated Regulation (EU) 2017/579 of 13 June 2016 supplementing Regulation (EU) No. 600/2014 of the European Parliament and of the Council on markets in financial instruments with regard to regulatory technical standards on the direct, substantial and foreseeable effect of derivative contracts within the Union and the prevention of the evasion of rules and obligations.

• Commission Delegated Regulation (EU) 2017/581 of 24 June 2016 supplementing Regulation (EU) No. 600/2014 of the European Parliament and of the Council with regard to regulatory technical standards on clearing access in respect of trading venues and central counterparties.

• Commission Delegated Regulation (EU) 2017/582 of 29 June 2016 supplementing Regulation (EU) No. 600/2014 of the European Parliament and of the Council with regard to regulatory technical standards specifying the clearing obligation for derivatives traded on an organised market and the timeframe for acceptance of clearing.

• Commission Implementing Regulation (EU) 2017/953 of 6 June 2017 on implementing technical standards with regard to the format and timing of position reports by investment firms and market operators operating a trading venue under Directive 2014/65/EU of the European Parliament and of the Council on markets in financial instruments.

• Commission Implementing Regulation (EU) 2017/1093 of 20 June 2017 on implementing technical standards with regard to the format of position reports by investment firms and market operators.

• Commission Delegated Regulation (EU) 2017/2154 of 22 September 2017 supplementing Regulation (EU) No. 600/2014 of the European Parliament and of the Council with regard to regulatory technical standards on indirect clearing arrangements.

• Commission Delegated Regulation (EU) 2017/2417 of 17 November 2017 supplementing Regulation (EU) No. 600/2014 of the European Parliament and of the Council on markets in financial instruments with regard to regulatory technical standards on the trading obligation for certain derivatives.

With these rules, the following regulations also enter into force in this country:

Commission Delegated Regulation (EU) 2022/1299 of 24 March 2022 supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to regulatory technical standards specifying the content of position management controls by trading venues, as published in the EEA Supplement to the Official Journal of the European Union No. 40 of 25 May 2023, pp. 47-49, cf. Decision of the EEA Joint Committee No. 18/2023, cf. also Protocol 1 on horizontal adaptations to the Agreement on the European Economic Area, cf. the Act on the European Economic Area, No. 2/1993, in which the Protocol is incorporated into law.

Commission Implementing Regulation (EU) 2022/1300 of 24 March 2022 amending Implementing Regulation (EU) 2017/1093 laying down implementing technical standards with regard to the format of position reports by investment firms and market operators, as published in the EEA Supplement to the Official Journal of the European Union No. 40 of 25 May 2023, pp. 50-55, cf. Decision of the EEA Joint Committee No. 18/2023, cf. also Protocol 1 on horizontal adaptations to the Agreement on the European Economic Area, cf. the Act on the European Economic Area, No. 2/1993, in which the Protocol is incorporated into law.

Commission Delegated Regulation (EU) 2022/1302 of 20 April 2022 supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to regulatory technical standards for the application of position limits to commodity derivatives and procedures for applying for exemption from position limits, as published in the EEA Supplement to the Official Journal of the European Union No. 40 of 25 May 2023, pp. 18-36, cf. Decision of the EEA Joint Committee No. 282/2022 as published in the EEA Supplement to the Official Journal of the European Union No. 35 of 4 May 2023 p. 9, cf. also Protocol 1 on horizontal adaptations to the Agreement on the European Economic Area, cf. the Act on the European Economic Area, No. 2/1993, in which the Protocol is incorporated into law.

Commission Delegated Regulation (EU) 2022/749 of 8 February 2022 amending the regulatory technical standards laid down in Delegated Regulation (EU) 2017/2417 as regards the transition to new benchmarks referenced in certain OTC derivative contracts, as published in the EEA Supplement to the Official Journal of the European Union No. 45 of 15 June 2023, pp. 69-70, cf. Decision of the EEA Joint Committee No. 57/2023, cf. also Protocol 1 on horizontal adaptations to the Agreement on the European Economic Area, cf. the Act on the European Economic Area, No. 2/1993, in which the Protocol is incorporated into law.

Article 4. Entry into force.

These rules, which are laid down pursuant to the first paragraph of Article 98, the fifth paragraph of Article 99, the fourth paragraph of Article 100, the seventh paragraph of Article 102, the second paragraph of Article 103 and items 22, 23, 24, 26, 28, 29 and 30 of the second paragraph of Article 145 of Act No. 115/2021 on markets in financial instruments, enter into force immediately. At the same time, Regulation No. 850/2022 on derivatives and clearing for financial instruments is repealed.

Central Bank of Iceland, 8 September 2023.

	Ásgeir Jónsson Governor of the Central Bank.	Rannveig Júníusdóttir Managing Director.

Section B - Published: 25 September 2023