1. For the purposes of Article 21, the competent authority shall allow an investment firm to calculate K-CMG for all positions that are subject to clearing, or on a portfolio basis, where the whole portfolio is subject to clearing or margining, under the following conditions:
(a) the investment firm is not part of a group containing a credit institution;
(b) the clearing and settlement of these transactions take place under the responsibility of a clearing member of a QCCP and that clearing member is a credit institution or an investment firm referred to in Article 1(2) of this Regulation, and the transactions are either centrally cleared in a QCCP or otherwise settled on a delivery versus payment basis under the responsibility of that clearing member;
(c) the calculation of the total margin required by the clearing member is based on a margin model of the clearing member;
(d) the investment firm has demonstrated to the competent authority that the choice of calculating RtM with K-CMG
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