On March 10, the European Commission (the Commission) published a draft delegated act detailing the obligation on clearing members and clients when providing clearing services under fair, reasonable, non-discriminatory and transparent (FRANDT) commercial terms (the Delegated Act).

The key areas addressed by the Commission in the Delegated Act include:

• transparency requirements in respect of fees, prices, discount policies and other general contractual terms and conditions regarding the price list;

• reasonable commercial terms to provide unbiased and rational contractual arrangements;

• requirements that assist clearing services on a fair and non-discriminatory basis; and

• risk control criteria for the clearing member or client related to the clearing services offered.

The requirement to apply FRANDT terms will apply from June 18.

The Delegated Act and Annex.