Oslo Clearing ASA Self Assessment ESCB-CESR Recommendation

Oslo Clearing reserves the right to require documentation about the operational
capacity of the applicant.
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?
Oslo Clearing does not require that members participate directly in the default
management process.
2. Does the CCP monitor that participation requirements are met on an ongoing
basis? If so, how? Through access to regulatory reports or directly? Are reports
sufficiently timely to be useful for monitoring purposes? Under what conditions can
the CCP suspend and terminate participants' membership? What arrangements does
the CCP have in place to facilitate the suspension and orderly exit of participants that
no longer meet the participation requirements?
Does the CCP monitor that participation requirements are met on an ongoing basis? If
so, how? Through access to regulatory reports or directly? Are reports sufficiently
timely to be useful for monitoring purposes?
Oslo Clearing requires that the clearing members meet participants requirements on
an ongoing basis, and requires that the members submit, by the end of the calendar
month in which it regularly files such information to the competent authorities, a
summarised statement of the size of its regulatory capital (both nominal amount and
as a percentage of risk-weighted total assets) together with a statement of the
composition of its regulatory capital.
Further, the clearing member is obliged to inform Oslo Clearing of any circumstance
that creates a risk that it no longer will comply with the regulatory requirements or be
able to meet the financial requirements. However, the collateralisation of the margin
requirement will ensure that Oslo Clearing at all times covers the expected risk in the
member's positions submitted for clearing.
Based on the regular flow of information, with the possibility to require additional
information, Oslo Clearing is in a position not only to monitor that participation
requirements are met, but also assess the inherent risk of any individual clearing
member.
Under what conditions can the CCP suspend and terminate participants' membership?
Oslo Clearing can suspend a clearing member or terminate its membership if it is in
breach of the provisions of the Rulebooks. Further details on the default procedures
are provided in this document under Recommendation 6 - Default Procedures.
What arrangements does the CCP have in place to facilitate the suspension and
orderly exit of participants that no longer meet the participation requirements?
The Rulebooks regulate the orderly exit of participants. The clearing member may
terminate its clearing membership with two (2) weeks notice. Oslo Clearing may also
terminate the clearing membership, however this will most likely occur in conjunction
with a default situation.
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