In this act Article 16a of 26
Article 16a — Post-trade risk reduction services (Article 31(4), point (b), of Regulation (EU) No 600/2014)
Financial servicesLevel 2Delegated RegulationMiFIRIn forceOfficial source
16a(1)Copy link
1.For the purposes of Article 31(1) of Regulation (EU) No 600/2014, post-trade risk reduction services are services that meet all the following conditions:
16a(1)(a)
(a)they are provided by a third-party service provider on the basis of non-discretionary rules that are set in advance;
Copy link16a(1)(b)
(b)the post-trade risk reduction exercise is accepted in full and, as a result, the participants in that exercise are not able to choose which trades to execute under the post-trade risk reduction exercise;
Copy link16a(1)(c)
(c)they have the purpose of achieving a reduction of risk in each derivatives portfolio submitted to the post-trade risk reduction exercise by the counterparties to the derivative transactions;
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(d)they are market-risk neutral, within the tolerances set by the counterparties to the derivative transactions submitted to the post-trade risk reduction exercise;
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(e)transactions that result from a post-trade risk reduction exercise do not contribute to price formation.
Copy link16a(2)Copy link
2.For the purposes of Article 31(1) of Regulation (EU) No 600/2014, post-trade risk reduction services shall include compression services, rebalancing services, and basis risk optimisation services.
CHAPTER IV — DERIVATIVES