Question
Which is the MPOR that should be considered for derivatives between a clearing member and a CCP?
Background on the question
According to article 279 quarter b of Regulation (EU) 2019/876, a MPOR of 5 days can be considered for derivatives between a client and a clearing member. This article does not specify differential treatment for transactions between a clearing member and a CCP. However, in consistency with article 279 quarter b, it seems to be able to apply a MPOR of 5 days in this type of derivatives. Please, can you confirm that this treatment is correct or should be applied a MPOR of 10 day corresponding to derivatives with daily collateral?
Answer
This question has been rejected because the issue it deals with is already explained or addressed in the regulatory framework. In particular, please see Article 279c(1)(b) of Regulation (EU) No 575/2013 (CRR).For further information on the purpose of this tool and on how to submit questions, please see “Additional background and guidance for asking questions”