The objectives of the regulation are to be pursued through specific obligations applicable to Financial Counterparties and Non-Financial Counterparties, with different means and dates of effectiveness.
The most significant obligations refer to:
- clearing through a central counterparty (CCP) of all standardized OTC derivatives contracts, as evidenced in a special public register set up by the European Securities and Markets Authority (ESMA);
- reporting to the Trade Repository of all transactions effected in financial derivatives, including exchange traded derivatives (ETD) and OTC transactions (and any amendment to or termination of the same);
- the variation and initial margin exchange for OTC derivatives not cleared on a CCP;
- application of risk-mitigation techniques as following:
- timely confirmation
- portfolio reconciliation
- portfolio compression
- dispute resolution
- daily mark-to-market valuation of derivatives contracts
- adoption of risk-management procedures.
Intesa Sanpaolo is member of the following CCPs: