1. For the purposes of Article 47(1) of Regulation (EU) No 648/2012, financial instruments can be considered highly liquid financial instruments, bearing minimal credit and market risk if they are debt instruments meeting each of the following conditions:

(a) they are issued or explicitly guaranteed by:

(i) a government;

(ii) a central bank;

(iii) a multilateral development bank as listed under Section 4.2 of Part 1 of Annex VI to Directive 2006/48/EC;

(iv) the European Financial Stability Facility or the European Stability Mechanism where applicable;

(b) the CCP can demonstrate that they have low credit and market risk based upon an internal assessment by the CCP. In performing such assessment the CCP shall employ a defined and objective methodology that shall not fully rely on external opinions and that takes into consideration the risk arising from the establishment of the issuer in a particular country;

(c) the average time-to-maturity of the CCP's portfolio does not exceed two years;

(d) they are denominated in one of the following currencies:

(i) a currency the risks of which the CCP can demonstrate that it is able to manage; or