Oslo Clearing ASA Self Assessment ESCB-CESR Recommendation

Assignment of assessment:
The laws and regulations governing the operation of Oslo Clearing and Oslo Clearing's
Rulebook, procedures, and contractual provisions for its participants, are clearly
stated, internally coherent, and readily accessible to participants and the public (Q1).
The legal framework demonstrates a high degree of assurance that there is a clear
and effective legal basis for all of Oslo Clearing’s operations and risk management
procedures (Q2).
The rules, procedures, and contracts of the CCP are enforceable even in the case of
the insolvency of a CCP participant and there is a high degree of assurance that
actions taken under such rules and procedures may not later be stayed, avoided or
reversed. This also applies for co-operation agreements with other CCPs, and Oslo
Clearing has a co-operation agreement with LCH on derivatives(Q3).
Oslo Clearing has identified the relevant jurisdictions in which it has cross-border
arrangements and has taken steps to address conflict of laws issues (Q4).
Settlements are done in VPO (financial instruments) and Oslo C NOK (cash) which
have been designated according to the Settlement Finality Directive (Q5).
The general rule is that the proprietary and contractual aspect of Oslo Clearing is
governed by Norwegian law, which is the governing law of Oslo Clearing (Q6).
The recommendation 1 on legal risk is observed
2 - Participation Requirements
A CCP should require participants to have sufficient financial resources and robust
operational capacity to meet obligations arising from participation in the CCP. A CCP
should have procedures in place to monitor that participation requirements are met
on an ongoing basis. A CCP's participation requirements should be objective, publicly
disclosed, and permit fair and open access. Rules and requirements that restrict
access should be aimed at controlling risk.
Observing Recommendation 2
1. Does the CCP establish requirements for participants' financial resources and
creditworthiness? If so, how? What factors are considered (for example, size, clearing
for indirect participants, products cleared?) Does the CCP assess participants'
operational capability? If so, how? What factors are considered (for example,
sufficient level of relevant expertise, necessary legal powers and business practices,
arrangements to meet payment obligations, risk management policies, staffing,
internal audit of risk controls and IT systems)? Does a CCP establish requirements for
clearing members to participate in default management processes of OTC derivatives
to ensure timely resolution of a large and complex portfolio?
Does the CCP establish requirements for participants' financial resources and
creditworthiness? If so, how?
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