#32026R1288EU suspends derivatives trading obligation for selected banks
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
This regulation suspends the EU derivatives trading obligation for selected major banks: BNP Paribas, Société Générale, Crédit Agricole CIB and Deutsche Bank. The trading obligation normally requires certain derivatives trades to be carried out only on EU trading venues, approved third-country venues, or other permitted platforms. The practical effect is that these named banks can carry out covered derivatives transactions outside the usual trading-venue requirement where the suspension applies. Compliance teams at affected financial institutions should check which trades, entities and internal controls are covered by the suspension before changing execution practices.
AI-generated summary. May contain errors. Refer to official sources for legal decisions.
Key Changes
- Suspends the EU derivatives trading obligation for BNP Paribas, Société Générale, Crédit Agricole CIB and Deutsche Bank
- Allows covered derivatives trades by those banks to be executed outside the usual approved trading-venue requirement where the suspension applies
- Implements requests made by French and German financial regulators under the MiFIR suspension mechanism
Obligations
What this law requires
Financial counterparties and non-financial counterparties subject to the clearing obligation under Regulation (EU) No 648/2012 must execute derivatives that are subject to the EU derivatives trading obligation only on regulated markets, MTFs, OTFs, or third-country trading venues recognised as equivalent under Article 28 of Regulation (EU) No 600/2014, unless a valid suspension applies.
BNP Paribas SA, Société Générale SA, Crédit Agricole Corporate and Investment Bank, and Deutsche Bank AG should apply the stand-alone suspension only to derivatives transactions covered by the suspension and should maintain controls to prevent use of the suspension for non-covered trades or non-covered entities.
Counterparties not covered by the stand-alone suspension remain prohibited from concluding in-scope derivatives transactions on third-country trading venues that have not been recognised as equivalent under Article 28 of Regulation (EU) No 600/2014.