CHAPTER VCOVERED SOVEREIGN CREDIT DEFAULT SWAPS PURSUANT TO ARTICLE 4(2)

Article 16Justification of uncovered sovereign credit default swap positions

Any natural or legal person entering into a sovereign credit default swap position shall, on the request of the F1FCA:

  1. (a)

    justify to F2the FCA which of the cases set out in Article 15 were fulfilled at the time the position was entered into;

  2. (b)

    demonstrate to F2the FCA compliance with the correlation test in Article 18 and the proportionality requirements in Article 19 in respect of that sovereign credit default swap position at any time that they hold that sovereign credit default swap.