Article 2Categories of counterparties
1.
For the purposes of Articles 3 and 4, the counterparties subject to the clearing obligation shall be divided in the following categories:
(a)
Category 1, comprising counterparties which, on the date of entry into force of this Regulation, are clearing members, within the meaning of Article 2(14) of Regulation (EU) No 648/2012, for at least one of the classes of OTC derivatives set out in the Annex to this Regulation, of at least one of the CCPs authorised or recognised before that date to clear at least one of those classes;
(b)
Category 2, comprising counterparties not belonging to Category 1 which belong to a group whose aggregate month-end average of outstanding gross notional amount of non-centrally cleared derivatives for January, February and March 2016 is above EUR 8 billion and which are any of the following:
- (i)
financial counterparties;
- (ii)alternative investment funds as defined in Article 4(1)(a) of Directive 2011/61/EU of the European Parliament and of the Council3 that are non-financial counterparties;
(c)
Category 3, comprising counterparties not belonging to Category 1 or Category 2 which are any of the following:
- (i)
financial counterparties;
- (ii)
alternative investment funds as defined in Article 4(1)(a) of Directive 2011/61/EU that are non-financial counterparties;
(d)
Category 4, comprising non-financial counterparties that do not belong to Category 1, Category 2 or Category 3.
2.
For the purposes of calculating the group aggregate month-end average of outstanding gross notional amount referred to in point (b) of paragraph 1, all of the group's non-centrally cleared derivatives, including foreign exchange forwards, swaps and currency swaps, shall be included.