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In this act Article 1 of 6

Article 1 — Capital requirements

Financial servicesLevel 2RTSEMIRIn forceOfficial source

1(1)

1.A CCP shall hold capital, including retained earnings and reserves, which shall be at all times more than or equal to the sum of:

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1(1)(a)
(a)the CCP’s capital requirements for winding down or restructuring its activities calculated in accordance with Article 2;
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1(1)(b)
(b)the CCP’s capital requirements for operational and legal risks calculated in accordance with Article 3;
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1(1)(c)
(c)the CCP’s capital requirements for credit, counterparty and market risks calculated in accordance with Article 4;
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1(1)(d)
(d)the CCP’s capital requirements for business risk calculated in accordance with Article 5.
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1(2)

2.A CCP shall have procedures in place to identify all sources of risks that may impact its on-going functions and shall consider the likelihood of potential adverse effects on its revenues or expenses and its level of capital.

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1(3)

3.If the amount of capital held by a CCP according to paragraph 1 is lower than 110 % of the capital requirements or lower than 110 % of EUR 7,5 million (‘notification threshold’), the CCP shall immediately notify the competent authority and keep it updated at least weekly, until the amount of capital held by the CCP returns above the notification threshold.

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1(4)

4.That notification shall be made in writing and shall contain the following elements:

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1(4)(a)
(a)the reasons for the CCP’s capital being below the notification threshold and a description of the short-term perspective of the CCP’s financial situation;
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1(4)(b)
(b)a comprehensive description of the measures the CCP intends to adopt to ensure the on-going compliance with the capital requirements.
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