(34)Article 28 of Regulation (EU) No 600/2014 requires that OTC derivatives that are subject to the clearing obligation be traded on trading venues (‘derivative trading obligation’). Regulation (EU) 2019/834 of the European Parliament and of the Council 11 amended Regulation (EU) No 648/2012 to reduce the scope of the entities that are subject to the clearing obligation. In light of the close interconnection between the clearing obligation and the derivative trading obligation, to ensure greater legal coherence, and to simplify the legal framework, it is necessary and appropriate to re-align the derivative trading obligation with the clearing obligation for derivatives. Without that alignment, certain smaller financial counterparties and non-financial counterparties would no longer be captured by the clearing obligation but continue to be captured by the derivative trading obligation.
Recital 34
- 11 Regulation (EU) 2019/834 of the European Parliament and of the Council of 20 May 2019 amending Regulation (EU) No 648/2012 as regards the clearing obligation, the suspension of the clearing obligation, the reporting requirements, the risk-mitigation techniques for OTC derivative contracts not cleared by a central counterparty, the registration and supervision of trade repositories and the requirements for trade repositories ( OJ L 141, 28.5.2019, p. 42 ). ↩