Recital 1

(1)In order to avoid disruption to international financial markets and to prevent penalising institutions by subjecting them to higher own funds requirements during the processes of authorisation and recognition of an existing central counterparty (CCP) as a qualifying central counterparty (QCCP), Article 497(1) and (2) of Regulation (EC) No 575/2013 established a transitional period during which all CCPs with which institutions established in the Union clear transactions will be considered QCCPs.