iOn 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.
