(Article 17(6) of Directive 2014/65/EU)

1. A clearing firm shall make an initial assessment of a prospective clearing client, taking into account the nature, scale and complexity of the prospective clearing client's business. Each prospective clearing client shall be assessed against the following criteria:

(a) credit strength, including any guarantees given;

(b) internal risk control systems;

(c) intended trading strategy;

(d) payment systems and arrangements that enable the prospective clearing client to ensure a timely transfer of assets or cash as margin, as required by the clearing firm in relation to the clearing services it provides;

(e) systems settings and access to information that helps the prospective clearing client to respect any maximum trading limit agreed with the clearing firm;

(f) any collateral provided to the clearing firm by the prospective clearing client;

(g) operational resources, including technological interfaces and connectivity;

(h) any involvement of the prospective clearing client in a breach of the rules ensuring the integrity of the financial markets, including involvement in market abuse, financial crime or money laundering activities.