Requirements of the EMIR regulation

29. A central counterparty providing clearing services must meet the requirements set out in the EMIR regulation (within the meaning of section 313 of the Act).

Loss allocation

29A. The central counterparty must maintain effective arrangements (which may include rules) for ensuring that losses that -

(a) arise otherwise than as a result of clearing member default; and

(b) threaten the central counterparty's solvency;

are allocated with a view to ensuring that the central counterparty can continue to provide the services and carry on the activities specified in its recognition order.

Recovery plans