(21)When processing the ATS application from a third-country CCP, the SFC assesses the compliance of the third-country CCP with the PFMIs as a benchmark. The conclusion of a memorandum of understanding between the SFC and the competent third-country supervisory authority of the applicant CCP is also required before the ATS application is approved as the SFC relies on the home regulator for day-to-day supervision of the third-country CCP.