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Status: You are viewing the version of the handbook as on 2018-07-01.

MAR 7A.5 Requirements when acting as a general clearing member

Application

MAR 7A.5.1RRP

1This section applies to a firm which provides the service of acting as a general clearing member.

Requirements

MAR 7A.5.2RRP

A firm must:

  1. (1)

    have clear criteria as to the suitability requirements of persons to whom clearing services will be provided;

  2. (2)

    apply those criteria;

  3. (3)

    impose requirements on the persons to whom clearing services are being provided to reduce risks to the firm and to the market; and

  4. (4)

    have a binding written agreement with any person to whom it is providing clearing services, detailing the essential rights and obligations of both parties arising from the provision of the services.

[Note: article 17(6) of MiFID and MiFID RTS 6 specifying the organisational requirements of investment firms acting as general clearing members]