Article 2
Requirements for the provision of indirect clearing services by clients
1. A client may only provide indirect clearing services to indirect clients provided that all of the following conditions are fulfilled:
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(a) |
the client is an authorised credit institution or investment firm or an entity established in a third country that would be considered to be a credit institution or investment firm if that entity were established in the Union; |
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(b) |
the client provides indirect clearing services on reasonable commercial terms and publicly discloses the general terms and conditions under which it provides those services; |
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(c) |
the clearing member has agreed to the general terms and conditions referred to in point (b) of this paragraph. |
2. The client referred to in paragraph 1 and the indirect client shall conclude, in writing, an indirect clearing arrangement. The indirect clearing arrangement shall include at least the following contractual terms:
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(a) |
the general terms and conditions referred to in paragraph 1(b); |
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(b) |
the client's commitment to honour all obligations of the indirect client towards the clearing member with regard to the transactions covered by the indirect clearing arrangement. |
All aspects of the indirect clearing arrangement shall be clearly documented.
3. A CCP shall not prevent the conclusion of indirect clearing arrangements that are entered into on reasonable commercial terms.