Open on EUR-Lex ↗

Recital 5

Recital 5

(5)Pursuant to Article 32a(1), point (a), of Regulation (EU) No 600/2014, the competent authority is to demonstrate that a financial counterparty within its jurisdiction regularly receives RFQs for the derivatives subject to the derivative trading obligation from a non-EEA counterparty which has no active membership on an EEA trading venue that offers trading in the OTC derivative subject to the derivative trading obligation. Since the requesting financial counterparties are not allowed to conclude transactions in derivatives subject to the derivative trading obligation on trading venues of third country jurisdictions that are not recognised as equivalent under Article 28 of Regulation (EU) No 600/2014, they are, to date, unable to receive RFQs for those derivatives from a non-EEA counterparty within those non-equivalent jurisdictions. In particular, following the United Kingdom’s withdrawal from the Union, requesting financial counterparties have been unable to receive RFQs for derivatives subject to the derivative trading obligation from non-EEA counterparties on trading venues in the United Kingdom. In view of that material impossibility, the AMF and BaFin assessed the trading activity of the requesting financial counterparties on trading venues in the United Kingdom before 2021. The AMF and BaFin provided evidence showing that, in the three years prior to the effective date of the United Kingdom’s withdrawal from the Union, the requesting financial counterparties regularly received RFQs and executed transactions on the basis of the RFQs received in derivatives subject to the derivative trading obligation on certain trading venues in the United Kingdom.

Official text · the act as publishedFrom the act as published (consolidated texts do not carry recitals or the preamble). Open full page ↗
6 queries · page built in 4 msInventory f82bbfa3