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
Modified by
  • Regulation (EU) No 575/2013 of the European Parliament and of the Councilof 26 June 2013on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012(Text with EEA relevance)Corrigendum to Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012(OJ L 176, 27.6.2013, p. 1), 32013R057532013R0575R(02), June 27, 2013
  • Commission Delegated Regulation (EU) No 1002/2013of 12 July 2013amending Regulation (EU) No 648/2012 of the European Parliament and of the Council on OTC derivatives, central counterparties and trade repositories with regard to the list of exempted entities(Text with EEA relevance), 32013R1002, October 19, 2013
  • Directive 2014/59/EU of the European Parliament and of the Councilof 15 May 2014establishing a framework for the recovery and resolution of credit institutions and investment firms and amending Council Directive 82/891/EEC, and Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, and Regulations (EU) No 1093/2010 and (EU) No 648/2012, of the European Parliament and of the Council(Text with EEA relevance), 32014L0059, June 12, 2014
  • Regulation (EU) No 600/2014 of the European Parliament and of the Councilof 15 May 2014on markets in financial instruments and amending Regulation (EU) No 648/2012(Text with EEA relevance), 32014R0600, June 12, 2014
  • Directive (EU) 2015/849 of the European Parliament and of the Councilof 20 May 2015on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC(Text with EEA relevance), 32015L0849, June 5, 2015
  • Commission Delegated Regulation (EU) 2015/1515of 5 June 2015amending Regulation (EU) No 648/2012 of the European Parliament and of the Council as regards the extension of the transitional periods related to pension scheme arrangements(Text with EEA relevance), 32015R1515, September 15, 2015
  • Regulation (EU) 2015/2365 of the European Parliament and of the Councilof 25 November 2015on transparency of securities financing transactions and of reuse and amending Regulation (EU) No 648/2012(Text with EEA relevance), 32015R2365, December 23, 2015
  • Commission Delegated Regulation (EU) 2017/610of 20 December 2016amending Regulation (EU) No 648/2012 of the European Parliament and of the Council as regards the extension of the transitional periods related to pension scheme arrangements(Text with EEA relevance), 32017R0610, March 31, 2017
  • Commission Delegated Regulation (EU) 2017/979of 2 March 2017amending Regulation (EU) No 648/2012 of the European Parliament and of the Council on OTC derivatives, central counterparties and trade repositories with regard to the list of exempted entities(Text with EEA relevance), 32017R0979, June 10, 2017
  • Regulation (EU) 2017/2402 of the European Parliament and of the Councilof 12 December 2017laying down a general framework for securitisation and creating a specific framework for simple, transparent and standardised securitisation, and amending Directives 2009/65/EC, 2009/138/EC and 2011/61/EU and Regulations (EC) No 1060/2009 and (EU) No 648/2012, 32017R2402, December 28, 2017
  • Commission Delegated Regulation (EU) 2019/460of 30 January 2019amending Regulation (EU) No 648/2012 of the European Parliament and of the Council with regard to the list of exempted entities(Text with EEA relevance), 32019R0460, March 22, 2019
  • Regulation (EU) 2019/834 of the European Parliament and of the Councilof 20 May 2019amending Regulation (EU) No 648/2012 as regards the clearing obligation, the suspension of the clearing obligation, the reporting requirements, the risk-mitigation techniques for OTC derivative contracts not cleared by a central counterparty, the registration and supervision of trade repositories and the requirements for trade repositories(Text with EEA relevance), 32019R0834, May 28, 2019
  • Regulation (EU) 2019/876 of the European Parliament and of the Councilof 20 May 2019amending Regulation (EU) No 575/2013 as regards the leverage ratio, the net stable funding ratio, requirements for own funds and eligible liabilities, counterparty credit risk, market risk, exposures to central counterparties, exposures to collective investment undertakings, large exposures, reporting and disclosure requirements, and Regulation (EU) No 648/2012(Text with EEA relevance), 32019R0876, June 7, 2019
  • Regulation (EU) 2019/2099 of the European Parliament and of the Councilof 23 October 2019amending Regulation (EU) No 648/2012 as regards the procedures and authorities involved for the authorisation of CCPs and requirements for the recognition of third-country CCPs, 32019R2099, December 12, 2019
  • Regulation (EU) 2021/23 of the European Parliament and of the Councilof 16 December 2020on a framework for the recovery and resolution of central counterparties and amending Regulations (EU) No 1095/2010, (EU) No 648/2012, (EU) No 600/2014, (EU) No 806/2014 and (EU) 2015/2365 and Directives 2002/47/EC, 2004/25/EC, 2007/36/EC, 2014/59/EU and (EU) 2017/1132(Text with EEA relevance), 32021R0023, January 22, 2021
  • Regulation (EU) 2021/168 of the European Parliament and of the Councilof 10 February 2021amending Regulation (EU) 2016/1011 as regards the exemption of certain third-country spot foreign exchange benchmarks and the designation of replacements for certain benchmarks in cessation, and amending Regulation (EU) No 648/2012(Text with EEA relevance), 32021R0168, February 12, 2021
Corrected by
  • Corrigendum to Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012, 32013R0575R(02), November 30, 2013
Regulation (EU) No 648/2012 of the European Parliament and of the Councilof 4 July 2012on OTC derivatives, central counterparties and trade repositories(Text with EEA relevance) TITLE ISUBJECT MATTER, SCOPE AND DEFINITIONS
Article 1Subject matter and scope1.This Regulation lays down clearing and bilateral risk-management requirements for over-the-counter ("OTC") derivative contracts, reporting requirements for derivative contracts and uniform requirements for the performance of activities of central counterparties ("CCPs") and trade repositories.2.This Regulation shall apply to CCPs and their clearing members, to financial counterparties and to trade repositories. It shall apply to non-financial counterparties and trading venues where so provided.3.Title V of this Regulation shall apply only to transferable securities and money-market instruments, as defined in point (18)(a) and (b) and point (19) of Article 4(1) of Directive 2004/39/EC.4.This Regulation shall not apply to:(a)the members of the ESCB and other Member States’ bodies performing similar functions and other Union public bodies charged with or intervening in the management of the public debt;(b)the Bank for International Settlements;(c)the central banks and public bodies charged with or intervening in the management of the public debt in the following countries:(i)Japan;(ii)United States of America;(iii)Australia;(iv)Canada;(v)Hong Kong;(vi)Mexico;(vii)Singapore;(viii)Switzerland;(ix)the United Kingdom of Great Britain and Northern Ireland.5.With the exception of the reporting obligation under Article 9, this Regulation shall not apply to the following entities:(a)multilateral development banks, as listed under Section 4.2 of Part 1 of Annex VI to Directive 2006/48/EC;(b)public sector entities within the meaning of point (18) of Article 4 of Directive 2006/48/EC where they are owned by central governments and have explicit guarantee arrangements provided by central governments;(c)the European Financial Stability Facility and the European Stability Mechanism.6.The Commission shall be empowered to adopt delegated acts in accordance with Article 82 to amend the list set out in paragraph 4 of this Article.To that end, by 17 November 2012 the Commission shall present to the European Parliament and the Council a report assessing the international treatment of public bodies charged with or intervening in the management of the public debt and central banks.The report shall include a comparative analysis of the treatment of those bodies and of central banks within the legal framework of a significant number of third countries, including at least the three most important jurisdictions as regards volumes of contracts traded, and the risk-management standards applicable to the derivative transactions entered into by those bodies and by central banks in those jurisdictions. If the report concludes, in particular in regard to the comparative analysis, that the exemption of the monetary responsibilities of those third-country central banks from the clearing and reporting obligation is necessary, the Commission shall add them to the list set out in paragraph 4.
Article 2DefinitionsFor the purposes of this Regulation, the following definitions shall apply:(1)"CCP" means a legal person that interposes itself between the counterparties to the contracts traded on one or more financial markets, becoming the buyer to every seller and the seller to every buyer;(2)"trade repository" means a legal person that centrally collects and maintains the records of derivatives;(3)"clearing" means the process of establishing positions, including the calculation of net obligations, and ensuring that financial instruments, cash, or both, are available to secure the exposures arising from those positions;(4)"trading venue" means a system operated by an investment firm or a market operator within the meaning of Article 4(1)(1) and 4(1)(13) of Directive 2004/39/EC other than a systematic internaliser within the meaning of Article 4(1)(7) thereof, which brings together buying or selling interests in financial instruments in the system, in a way that results in a contract in accordance with Title II or III of that Directive;(5)"derivative" or "derivative contract" means a financial instrument as set out in points (4) to (10) of Section C of Annex I to Directive 2004/39/EC as implemented by Article 38 and 39 of Regulation (EC) No 1287/2006;(6)"class of derivatives" means a subset of derivatives sharing common and essential characteristics including at least the relationship with the underlying asset, the type of underlying asset, and currency of notional amount. Derivatives belonging to the same class may have different maturities;(7)"OTC derivative" or "OTC derivative contract" means a derivative contract the execution of which does not take place on a regulated market within the meaning of Article 4(1)(14) of Directive 2004/39/EC or on a third-country market considered to be equivalent to a regulated market in accordance with Article 2a of this Regulation;(8)"financial counterparty" means:(a)an investment firm authorised in accordance with Directive 2014/65/EU of the European Parliament and of the CouncilDirective 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L 173, 12.6.2014, p. 349).;(b)a credit institution authorised in accordance with Directive 2013/36/EU of the European Parliament and of the CouncilDirective 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC (OJ L 176, 27.6.2013, p. 338).;(c)an insurance undertaking or reinsurance undertaking authorised in accordance with Directive 2009/138/EC of the European Parliament and of the CouncilDirective 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (OJ L 335, 17.12.2009, p. 1).;(d)a UCITS and, where relevant, its management company, authorised in accordance with Directive 2009/65/EC, unless that UCITS is set up exclusively for the purpose of serving one or more employee share purchase plans;(e)an institution for occupational retirement provision (IORP), as defined in point (1) of Article 6 of Directive (EU) 2016/2341 of the European Parliament and of the CouncilDirective (EU) 2016/2341 of the European Parliament and of the Council of 14 December 2016 on the activities and supervision of institutions for occupational retirement provision (IORPs) (OJ L 354, 23.12.2016, p. 37).;(f)an alternative investment fund (AIF), as defined in point (a) of Article 4(1) of Directive 2011/61/EU, which is either established in the Union or managed by an alternative investment fund manager (AIFM) authorised or registered in accordance with that Directive, unless that AIF is set up exclusively for the purpose of serving one or more employee share purchase plans, or unless that AIF is a securitisation special purpose entity as referred to in point (g) of Article 2(3) of Directive 2011/61/EU, and, where relevant, its AIFM established in the Union;(g)a central securities depository authorised in accordance with Regulation (EU) No 909/2014 of the European Parliament and of the CouncilRegulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories and amending Directives 98/26/EC and 2014/65/EU and Regulation (EU) No 236/2012 (OJ L 257, 28.8.2014, p. 1).;(9)"non-financial counterparty" means an undertaking established in the Union other than the entities referred to in points (1) and (8);(10)"pension scheme arrangement" means:(a)institutions for occupational retirement provision within the meaning of Article 6(a) of Directive 2003/41/EC, including any authorised entity responsible for managing such an institution and acting on its behalf as referred to in Article 2(1) of that Directive as well as any legal entity set up for the purpose of investment of such institutions, acting solely and exclusively in their interest;(b)occupational retirement provision businesses of institutions referred to in Article 3 of Directive 2003/41/EC;(c)occupational retirement provision businesses of life insurance undertakings covered by Directive 2002/83/EC, provided that all assets and liabilities corresponding to the business are ring-fenced, managed and organised separately from the other activities of the insurance undertaking, without any possibility of transfer;(d)any other authorised and supervised entities, or arrangements, operating on a national basis, provided that:(i)they are recognised under national law; and(ii)their primary purpose is to provide retirement benefits;(11)"counterparty credit risk" means the risk that the counterparty to a transaction defaults before the final settlement of the transaction’s cash flows;(12)"interoperability arrangement" means an arrangement between two or more CCPs that involves a cross-system execution of transactions;(13)"competent authority" means the competent authority referred to in the legislation referred to in point (8) of this Article, the competent authority referred to in Article 10(5) or the authority designated by each Member State in accordance with Article 22;(14)"clearing member" means an undertaking which participates in a CCP and which is responsible for discharging the financial obligations arising from that participation;(15)"client" means an undertaking with a contractual relationship with a clearing member of a CCP which enables that undertaking to clear its transactions with that CCP;(16)"group" means the group of undertakings consisting of a parent undertaking and its subsidiaries within the meaning of Articles 1 and 2 of Directive 83/349/EEC or the group of undertakings referred to in Article 3(1) and Article 80(7) and (8) of Directive 2006/48/EC;(17)"financial institution" means an undertaking other than a credit institution, the principal activity of which is to acquire holdings or to carry on one or more of the activities listed in points (2) to (12) of Annex I to Directive 2006/48/EC;(18)"financial holding company" means a financial institution, the subsidiary undertakings of which are either exclusively or mainly credit institutions or financial institutions, at least one of such subsidiary undertakings being a credit institution, and which is not a mixed financial holding company within the meaning of Article 2(15) of Directive 2002/87/EC of the European Parliament and of the Council of 16 December 2002 on the supplementary supervision of credit institutions, insurance undertakings and investment firms in a financial conglomerateOJ L 35, 11.2.2003, p. 1.;(19)"ancillary services undertaking" means an undertaking the principal activity of which consists in owning or managing property, managing data-processing services, or a similar activity which is ancillary to the principal activity of one or more credit institution;(20)"qualifying holding" means any direct or indirect holding in a CCP or trade repository which represents at least 10 % of the capital or of the voting rights, as set out in Articles 9 and 10 of Directive 2004/109/EC of the European Parliament and of the Council of 15 December 2004 on the harmonisation of transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated marketOJ L 390, 31.12.2004, p. 38., taking into account the conditions regarding aggregation thereof laid down in Article 12(4) and (5) of that Directive, or which makes it possible to exercise a significant influence over the management of the CCP or trade repository in which that holding subsists;(21)"parent undertaking" means a parent undertaking as described in Articles 1 and 2 of Directive 83/349/EEC;(22)"subsidiary" means a subsidiary undertaking as described in Articles 1 and 2 of Directive 83/349/EEC, including a subsidiary of a subsidiary undertaking of an ultimate parent undertaking;(23)"control" means the relationship between a parent undertaking and a subsidiary, as described in Article 1 of Directive 83/349/EEC;(24)"close links" means a situation in which two or more natural or legal persons are linked by:(a)participation, by way of direct ownership or control, of 20 % or more of the voting rights or capital of an undertaking; or(b)control or a similar relationship between any natural or legal person and an undertaking or a subsidiary of a subsidiary also being considered a subsidiary of the parent undertaking which is at the head of those undertakings.A situation in which two or more natural or legal persons are permanently linked to one and the same person by a control relationship shall also be regarded as constituting a close link between such persons.(25)"capital" means subscribed capital within the meaning of Article 22 of Council Directive 86/635/EEC of 8 December 1986 on the annual accounts and consolidated accounts of banks and other financial institutionsOJ L 372, 31.12.1986, p. 1. in so far it has been paid up, plus the related share premium accounts, it fully absorbs losses in going concern situations, and, in the event of bankruptcy or liquidation, it ranks after all other claims;(26)"reserves" means reserves as set out in Article 9 of Fourth Council Directive 78/660/EEC of 25 July 1978 based on Article 54(3)(g) of the Treaty on the annual accounts of certain types of companiesOJ L 222, 14.8.1978, p. 11. and profits and losses brought forward as a result of the application of the final profit or loss;(27)"board" means administrative or supervisory board, or both, in accordance with national company law;(28)"independent member" of the board means a member of the board who has no business, family or other relationship that raises a conflict of interests regarding the CCP concerned or its controlling shareholders, its management or its clearing members, and who has had no such relationship during the five years preceding his membership of the board;(29)"senior management" means the person or persons who effectively direct the business of the CCP or the trade repository, and the executive member or members of the board;(30)"covered bond" means a bond meeting the requirements of Article 129 of Regulation (EU) No 575/2013;(31)"covered bond entity" means the covered bond issuer or cover pool of a covered bond.
Article 2aEquivalence decisions for the purposes of the definition of OTC derivatives1.For the purposes of Article 2(7) of this Regulation, a third-country market shall be considered to be equivalent to a regulated market within the meaning of Article 4(1)(14) of Directive 2004/39/EC where it complies with legally binding requirements which are equivalent to the requirements laid down in Title III of that Directive and it is subject to effective supervision and enforcement in that third country on an ongoing basis, as determined by the Commission in accordance with the procedure referred to in paragraph 2 of this Article.2.The Commission may adopt implementing acts determining that a third-country market complies with legally binding requirements which are equivalent to the requirements laid down in Title III of Directive 2004/39/EC and it is subject to effective supervision and enforcement in that third country on an ongoing basis for the purposes of paragraph 1.Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 86(2) of this Regulation.3.The Commission and ESMA shall publish on their websites a list of those markets that are to be considered to be equivalent in accordance with the implementing act referred to in paragraph 2. That list shall be updated periodically.
Article 3Intragroup transactions1.In relation to a non-financial counterparty, an intragroup transaction is an OTC derivative contract entered into with another counterparty which is part of the same group provided that both counterparties are included in the same consolidation on a full basis and they are subject to an appropriate centralised risk evaluation, measurement and control procedures and that counterparty is established in the Union or, if it is established in a third country, the Commission has adopted an implementing act under Article 13(2) in respect of that third country.2.In relation to a financial counterparty, an intragroup transaction is any of the following:(a)an OTC derivative contract entered into with another counterparty which is part of the same group, provided that the following conditions are met:(i)the financial counterparty is established in the Union or, if it is established in a third country, the Commission has adopted an implementing act under Article 13(2) in respect of that third country;(ii)the other counterparty is a financial counterparty, a financial holding company, a financial institution or an ancillary services undertaking subject to appropriate prudential requirements;(iii)both counterparties are included in the same consolidation on a full basis; and(iv)both counterparties are subject to appropriate centralised risk evaluation, measurement and control procedures;(b)an OTC derivative contract entered into with another counterparty where both counterparties are part of the same institutional protection scheme, referred to in Article 80(8) of Directive 2006/48/EC, provided that the condition set out in point (a)(ii) of this paragraph is met;(c)an OTC derivative contract entered into between credit institutions affiliated to the same central body or between such credit institution and the central body, as referred to in Article 3(1) of Directive 2006/48/EC; or(d)an OTC derivative contract entered into with a non-financial counterparty which is part of the same group provided that both counterparties are included in the same consolidation on a full basis and they are subject to an appropriate centralised risk evaluation, measurement and control procedures and that counterparty is established in the Union or in a third-country jurisdiction for which the Commission has adopted an implementing act as referred to in Article 13(2) in respect of that third country.3.For the purposes of this Article, counterparties shall be considered to be included in the same consolidation when they are both either:(a)included in a consolidation in accordance with Directive 83/349/EEC or International Financial Reporting Standards (IFRS) adopted pursuant to Regulation (EC) No 1606/2002 or, in relation to a group the parent undertaking of which has its head office in a third country, in accordance with generally accepted accounting principles of a third country determined to be equivalent to IFRS in accordance with Regulation (EC) No 1569/2007 (or accounting standards of a third country the use of which is permitted in accordance with Article 4 of that Regulation); or(b)covered by the same consolidated supervision in accordance with Directive 2006/48/EC or Directive 2006/49/EC or, in relation to a group the parent undertaking of which has its head office in a third country, the same consolidated supervision by a third-country competent authority verified as equivalent to that governed by the principles laid down in Article 143 of Directive 2006/48/EC or in Article 2 of Directive 2006/49/EC.
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