(2)In order for a third-country legal regime to be considered equivalent to the legal regime of the Union in respect of CCPs, the substantial outcome of the applicable legal and supervisory arrangements of such regime is to be equivalent to Union requirements in respect of the regulatory objectives those requirements achieve. The purpose of this equivalence assessment is therefore to verify that the legal and supervisory arrangements of the People’s Republic of China ensure that CCPs established and authorised therein to clear OTC derivatives in the interbank market do not expose clearing members and trading venues established in the Union to a higher level of risk than those clearing members and trading venues could be exposed to by CCPs authorised in the Union and, consequently, do not pose unacceptable levels of systemic risk in the Union. The significantly lower risks inherent in clearing activities carried out in a financial market that is smaller than the Union financial market should thereby, in particular, be taken into account.