Recital 5

(5)This Decision covers the regulatory and supervisory regime applicable to CCPs that are authorised by the People’s Bank of China to clear OTC derivatives in the interbank market. The People’s Bank of China is responsible for authorising and supervising CCPs providing central clearing of OTC derivatives transactions on the Chinese interbank markets. In the People’s Republic of China, interbank OTC derivatives transactions are defined as transactions between institutional investors pertaining to derivative contracts that are not traded on an exchange supervised by the China Securities Regulatory Commission (‘CSRC’) ² . The Chinese interbank markets mainly consist of the interbank bond market ³ , the interbank lending market ⁴ and the interbank foreign exchange market ⁵ . The OTC derivatives interbank markets include interest rate derivatives, exchange rate derivatives, bond derivatives, credit derivatives and commodity derivatives. The derivative contracts falling under the competence of the People’s Bank of China correspond to a subset of the derivatives contracts covered by the provisions applicable to CCPs set out in Regulation (EU) No 648/2012.