(16)In Chile, in accordance with Circular No 2.311 of 2022, an ‘equivalent third-country CCP’ is a CCP operating in a jurisdiction in which the CMF observes material compliance with the PFMIs, is subject to effective supervision and with which a cooperation arrangement between the third-country supervisor and the CMF exists. Third-country CCPs recognised as equivalent by the CMF are part of a public record that is assessed at least annually in order to check the compliance with the PFMIs. Third-country CCPs that have not been recognised by the CMF as equivalent third-country CCPs may also provide clearing services to Chilean banks. However, whereas exposures of Chilean banks to equivalent third-country CCPs benefit from a preferential capital treatment in accordance with Circular No 2.311, exposures towards third-country CCPs which are not considered equivalent are applied a punitive risk-weight of 1 250 %. In practice, such a high risk-weight for non-equivalent third-country CCPs is prohibitive and very few, if any, Chilean banks can be expected to clear at non-equivalent third-country CCPs. Moreover, if Chilean banks anyhow decided to clear in a non-equivalent third-country CCP, the high risk-weight would mitigate any risks related to its exposures. In light of the capital treatment applicable to exposures to non-equivalent CCPs under Circular No 2.311, the Chilean regime can be considered to provide an effective equivalent system for the recognition of third-country CCPs.