EBA · 2022_6551 Rejected question

Identification of counterparty

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
305
Topic
Market infrastructures
Submitted by
Credit institution
Submitted
2022-08-08
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Question

The treatment of client exposures to a CCP via a clearing member is described in art 305 and consists of 1/ application of art 305 paragraph 1 (when the conditions in paragraph 2 are not met) = use of counterpart credit risk section 1 to 8 for the CCP-related transactions with the clearing member 2/ application of art 305 paragraph 2 (and subject to paragraph 3) = use of art 306 for the trade exposures with the CCP Can it be clarrified which party should be treated as the counterparty in sush a transaction (the clearing member or the CCP) under Corep? Can it in addition be clarrified whether the same counterparty as in Corep should be used under Finrep?

Background

For the reporting by residence of the counterparty under Corep, and for the determination of the IRB parameters, the counterparty in a transaction has to be clearly identified. In the case of transactions with a clearing member that acts as a financial intermediairy to a CCP there is some unclarity to whom is the counterparty, and whether or not this is dependant on the application of art 305 paragraph 1 (which talks about 'CCP-related transactions towards a clearing member') and art 305 paragraph 2 (and 3) and art 306 (which talks about 'CCP-related transactions to a clearing member' in art 305 paragraph 2, but refers to art 306 which uses the term 'trade exposures towards a CCP').
No answer published yet.

Original source: European Banking Authority, Q&A ID 2022_6551

This Q&A is published by European Banking Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

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