Commission Delegated Regulation (EU) 2017/323 Article 1

Article 1

›

3.In Article 37 of Delegated Regulation (EU) 2016/2251, the following paragraphs 3 and 4 are added:

‘3. By way of derogation from paragraph 1, where the conditions of paragraph 4 of this Article are met, Articles 9(1), 10 and 12 shall apply as follows:

((a))

3 years after the date of entry into force of this Regulation where no equivalence decision has been adopted pursuant to Article 13(2) of Regulation (EU) No 648/2012 for the purposes of Article 11(3) of that Regulation in respect of the relevant third country;

((b))

the later of the following dates where an equivalence decision has been adopted pursuant to Article 13(2) of Regulation (EU) No 648/2012 for the purposes of Article 11(3) of that Regulation in respect of the relevant third country:(i)four months after the date of entry into force of the decision adopted pursuant to Article 13(2) of Regulation (EU) No 648/2012 for the purposes of Article 11(3) of that Regulation in respect of the relevant third country;(ii)the applicable date determined pursuant to paragraph 1.

((i))

four months after the date of entry into force of the decision adopted pursuant to Article 13(2) of Regulation (EU) No 648/2012 for the purposes of Article 11(3) of that Regulation in respect of the relevant third country;

((ii))

the applicable date determined pursuant to paragraph 1.

4. The derogation referred to in paragraph 3 shall only apply where counterparties to a non-centrally cleared OTC derivative contract meet all of the following conditions:

((a))

one counterparty is established in a third country and the other counterparty is established in the Union;

((b))

the counterparty established in a third country is either a financial counterparty or a non-financial counterparty;

((c))

the counterparty established in the Union is one of the following:(i)a financial counterparty, a non-financial counterparty, a financial holding company, a financial institution or an ancillary services undertaking subject to appropriate prudential requirements and the third country counterparty referred to in point (a) is a financial counterparty;(ii)either a financial counterparty or a non-financial counterparty and the third country counterparty referred to in point (a) is a non-financial counterparty;

((i))

a financial counterparty, a non-financial counterparty, a financial holding company, a financial institution or an ancillary services undertaking subject to appropriate prudential requirements and the third country counterparty referred to in point (a) is a financial counterparty;

((ii))

either a financial counterparty or a non-financial counterparty and the third country counterparty referred to in point (a) is a non-financial counterparty;

((d))

both counterparties are included in the same consolidation on a full basis in accordance to Article 3(3) of Regulation (EU) No 648/2012;

((e))

both counterparties are subject to appropriate centralised risk evaluation, measurement and control procedures;

((f))

the requirements of Chapter III are met.’.