Document ID: chunk:federal_register_of_legislation:F2024C01135:reg:6:p8
Version: federal_register_of_legislation:F2024C01135
Segment Type: reg
Provision Reference: reg 6 (pt 8/13)
Character Range: 33031–36119

(i)         is authorised to provide clearing services in respect of the class of Derivatives that includes the Clearing Derivative to which the Clearing Transaction relates; and
(ii)       provides clearing services in respect of the Clearing Derivative to which the Clearing Transaction relates; and
(b)       there is no Prescribed CS Facility that:
(i)         is prescribed in relation to the class of Derivatives that includes the Clearing Derivative to which the Clearing Transaction relates; and
(ii)       provides clearing services in respect of the Clearing Derivative to which the Clearing Transaction relates.

2.1.4 Exception to Clearing Requirement—Intra-group trades

(1) A Clearing Entity is not required to comply with Rule 2.1.1 in relation to a Clearing Transaction if, at the time the Clearing Transaction is entered into, the counterparty to the Clearing Transaction is a related body corporate of the Clearing Entity.

2.1.5 Exception to Clearing Requirement—Multilateral portfolio compression
(1) A Clearing Entity is not required to comply with Rule 2.1.1 in relation to a Clearing Transaction if:
(a)        the Clearing Transaction is entered into by the Clearing Entity as a result of the Clearing Entity modifying or terminating and replacing Derivatives under a Multilateral Portfolio Compression Cycle; and
(b)       for each of the Derivatives that was modified, or terminated and replaced—entry into the Derivative was not a Clearing Transaction that was required to be Cleared Through a Clearing Facility in accordance with Rule 2.1.1 or subrule 2.1.6(2); and
(c)        the Clearing Transactions entered into by the Clearing Entity as a result of the Multilateral Portfolio Compression Cycle are only entered into with persons who were counterparties to those Derivatives; and
(d)       the Multilateral Portfolio Compression Cycle was conducted in accordance with the rules of a third-party operator of Multilateral Portfolio Compression Cycles and involved more than two participants, none of which was the operator; and
(e)        the Multilateral Portfolio Compression Cycle was conducted in compliance with the counterparty credit risk tolerance levels set by the participants in the Multilateral Portfolio Compression Cycle.
(2) In subrule (1), Multilateral Portfolio Compression Cycle means a process under which portfolios of Derivatives between participants in the process are modified to reduce their notional value or terminated and replaced with new Derivatives providing for reduced notional exposures between the participants, conducted for the purposes of reducing operational risk or counterparty credit risk for the participants.

2.1.6 T+3 clearing if foreign clearing requirements apply
(1) A Clearing Entity is not required to comply with Rule 2.1.1 in relation to a Clearing Transaction if the Clearing Entity or its counterparty to the Clearing Transaction is subject to a requirement in a foreign jurisdiction (relevant foreign jurisdiction) which requires the Clearing Transaction to be Cleared Through a Clearing Facility by no