Oslo Clearing ASA Self Assessment ESCB-CESR Recommendation
Oslo Clearing ASA Self Assessment ESCB-CESR Recommendation
Oslo Clearing ASA Self Assessment ESCB-CESR Recommendation
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for determining the adequacy of the legal framework? Has the legal<br />
framework been evaluated for the other relevant jurisdictions?<br />
As set out above as a main rule the CCP activities of <strong>Oslo</strong> <strong>Clearing</strong> are<br />
governed by Norwegian law, cf. sections a-c above.<br />
Legislation in other jurisdictions may be relevant for <strong>Oslo</strong> <strong>Clearing</strong> due to<br />
participation and relations to entities incorporated outside Norway, cf<br />
inter alia above. In order to prevent conflict of law issues from arising,<br />
<strong>Oslo</strong> <strong>Clearing</strong> may require all applicants to provide legal opinions. Non-<br />
EEA applicants must always submit legal opinions before membership is<br />
granted in order to assess whether there are any legal issues arising due<br />
to the potential conflict of law.<br />
<strong>Oslo</strong> <strong>Clearing</strong> has performed legal assessments to ensure that <strong>Oslo</strong><br />
<strong>Clearing</strong>’s interests upon conflict of laws situations are addressed.<br />
Do laws and rules support the design of any cross-border arrangement<br />
and provide adequate protection to both CCPs in the operation of the<br />
arrangement?<br />
Cross-border arrangements offers adequate protection to <strong>Oslo</strong> <strong>Clearing</strong><br />
and the co-operating CCP, please refer to <strong>Recommendation</strong> 11 for an<br />
assessment of the clearing co-operation agreement with LCH.<br />
Are there conflicts of law issues and, if so, have they been addressed?<br />
Conflict of laws issues between the two co-operating CCPs (<strong>Oslo</strong> <strong>Clearing</strong><br />
and LCH) are mitigated through the clearing co-operation agreement<br />
between the two parties, including the so-called "Main Market" principle,<br />
please refer to <strong>Recommendation</strong> 11 for further details.<br />
Have cross-border collateral arrangements been evaluated?<br />
The Financial Collateral Act specifies that for financial collateral in form<br />
of securities all issues regarding the legal characteristics etc of the<br />
collateral shall be regulated by the laws of the country where the<br />
account in question is held.<br />
Cash collateral is predominantly pledged through accounts held by<br />
clearing members or end clients in credit institutions incorporated in<br />
Norway, or subsidiaries of credit institutions incorporated in Sweden and<br />
Denmark. <strong>Clearing</strong> members using credit institutions incorporated in the<br />
UK may not pledge their accounts to <strong>Oslo</strong> <strong>Clearing</strong> due to pledge being<br />
deemed less effective. These members must pay margin requirements<br />
et. al. directly to <strong>Oslo</strong> <strong>Clearing</strong>.<br />
Eligible collateral in the form of financial instruments may be held either<br />
on a VPS Account, an account with Clearstream, or with SEB, whereby<br />
Norwegian, Luxembourg and Swedish law respectively will apply.<br />
<strong>Oslo</strong> <strong>Clearing</strong> has performed legal assessments to ensure that <strong>Oslo</strong><br />
<strong>Clearing</strong>’s interests upon conflict of laws situations are addressed,<br />
Equity<br />
Rulebook<br />
Section<br />
2.3 (d)<br />
Derivatives<br />
Rulebook<br />
Section<br />
2.1.1.4<br />
Financial<br />
Collateral Act<br />
14/69
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