Treatment of recognised exchanges (non-third country vs. third country)

Exposures to a recognised exchange, as defined in point 72 of Article 4(1) of Regulation (EU) No 575/2013 (CRR) are not automatically treated as exposures to institutions. For an exposure to a recognised exchange to be treated as an exposure to an institution certain conditions need to be met: a) in case of a recognised exchange established in the EU, the conditions in Article 119(5) of the CRR; b) in case of a recognised exchange established in a third country, the conditions in Articles 107(3) and 119(5) of the CRR. If the above conditions are not met, then the exposure to the recognised exchange must be treated as an exposure to a corporate. DISCLAIMER: This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General for Internal Market and Services) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.