Commentaries: Art. 6

The derivatives categories to be cleared via a central counterparty are listed in Annex 1.
The decision whether to list derivatives categories in Annex 1 is based on whether:
1. the contract conditions contain the usual legal documents for the sector with the usual contract specifications listed by counterparties;
2. the operational processes are subject to automated post-trade processing and there are standardised lifecycle events managed in accordance with a generally agreed schedule;
3. the margin or financial requirements of the central counterparty are adequately proportionate to the risk being mitigated by the obligatory clearing;
4. the size and depth of the product's market are stable over the long term;
5. if a participant in a central counterparty defaults, the market segmentation remains sufficiently high;
6. the number and value of the previously concluded transactions are sufficiently high;
7. the information required for the formation of prices is readily available on normal commercial conditions;
8. there is a heightened systemic risk that counterparties may be unable to meet their payment and delivery obligations to each other if there are strong interdependencies between them.