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🔗 Back to Summary. 🇫🇷 French Version: 2017R0567_FR.16 bis. Back to Summary of LVL1. Direct link to EUR-LEX.
Article 15 – Orders considerably exceeding the norm ⬅️ | ➡️ Article 17 – Elements of Portfolio compression
References LVL1 <=> LVL2
Level 1 reference(s): 2014R0600_EN.31 > 4#b
Article 16a - Post-trade risk reduction services
1.
For the purposes of 2014, post-trade risk reduction services are services that meet all the following conditions:
(a)
they are provided by a third-party service provider on the basis of non-discretionary rules that are set in advance;
(b)
the post-trade risk reduction exercise is accepted in full and, as a result, the participants in that exercise are not able to choose which trades to execute under the post-trade risk reduction exercise;
(c)
they have the purpose of achieving a reduction of risk in each derivatives portfolio submitted to the post-trade risk reduction exercise by the counterparties to the derivative transactions;
(d)
they are market-risk neutral, within the tolerances set by the counterparties to the derivative transactions submitted to the post-trade risk reduction exercise;
(e)
transactions that result from a post-trade risk reduction exercise do not contribute to price formation.
2.
For the purposes of 2014, post-trade risk reduction services shall include compression services, rebalancing services, and basis risk optimisation services.