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Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (Text with EEA relevance)
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Regulation (EU) No 648/2012 of the European Parliament and of the Council, Article 6b is up to date with all changes known to be in force on or before 16 January 2026. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.![]()
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1.The Bank of England may by rules provide for the clearing obligation referred to in Article 4(1) in respect of a class or classes of OTC derivatives not to apply—
(a)in relation to activities or transactions of a specified description carried out as part of a risk reduction service, or
(b)to persons of a specified description in the provision of such services.
2.The power to make rules under paragraph 1 is exercisable only if the Bank of England considers that the rules are necessary or expedient for the purpose of advancing the financial stability objective under section 2A of the Bank of England Act 1998.
3.The risk reduction services to which the rules relate may only be post-trade services that do not give rise to any transactions that contribute to the price discovery process.
4.The rules—
(a)may describe the risk reduction services to which they relate in whatever way the Bank of England considers appropriate (subject to paragraph 3);
(b)may provide for whatever conditions or exceptions the Bank of England considers appropriate.
5.In this Article—
“risk reduction service” means a service provided to two or more counterparties to derivatives transactions for the purpose of reducing non-market risks in derivatives portfolios (including, for example, portfolio compression);
“specified” means specified in the rules.]
Textual Amendments
F1Art. 6b inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 2 para. 29 (with s. 2(3)); S.I. 2023/779, reg. 4(zz)(ii)
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