in force 2024-03-28 MODIFIED+735 −695§
Amended by Regulation (EU) 2024/791 32024R0791
applies from: unchanged
The heading and paragraph 1 change from covering only portfolio compression to covering transactions in OTC derivatives formed and established as a result of post-trade risk reduction services, and the list of exempted obligations is revised to reference Articles 8a, 10 and 21, the trading obligation in Article 28, and the best-execution obligation in Article 27 of Directive 2014/65/EU, replacing the earlier reference to Articles 8, 10, 18 and 21 and Article 1(6) of that Directive.
Paragraph 3 now applies to providers of post-trade risk reduction services and limits the record-keeping duty to transactions referred to in paragraph 1 that are not already recorded or reported under Regulation (EU) No 648/2012, replacing the earlier broader duty to record all portfolio compressions organised or participated in.
Paragraph 4's delegation to the Commission is reworded so that the specified matters become post-trade risk reduction services for the purposes of paragraph 1 and the transactions to be recorded under paragraph 3, replacing the earlier reference to elements of portfolio compression and information to be published under paragraph 2.
Cited: Art. 31, v1 · Art. 31, v2
text before / after
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before (02014R0600-20240109)
Article 31 Portfolio Compression 1. When providing portfolio compression, investment firms and market operators shall not be subject to the best execution obligation in Article 27 of Directive 2014/65/EU, the transparency obligations in Articles 8, 10, 18 and 21 of this Regulation and the obligation in Article 1(6) of Directive 2014/65/EU. The termination or replacement of the component derivatives in the portfolio compression shall not be subject to Article 28 of this Regulation. 2. Investment firms and market operators providing portfolio compression shall make public through an APA the volumes of transactions subject to portfolio compressions and the time they were concluded within the time limits specified in Article 10. 3. Investment firms and market operators providing portfolio compressions shall keep complete and accurate records of all portfolio compressions which they organise or participate in. Those records shall be made available promptly to the relevant competent authority or ESMA upon request. 4. The Commission may adopt by means of delegated acts in accordance with Article 50, measures specifying the following: (a) the elements of portfolio compression, (b) the information to be published pursuant to paragraph 2, in such a way as to make use as far as possible of any existing record keeping, reporting or publication requirements.
after (02014R0600-20240328)
Article 31 Post-trade risk reduction services 1. The transparency requirements laid down in Articles 8a, 10 and 21 of this Regulation, the trading obligation laid down in Article 28 of this Regulation and the obligation to execute orders on terms most favourable to the client laid down in Article 27 of Directive 2014/65/EU shall not apply to transactions in OTC derivatives that are formed and established as a result of post-trade risk reduction services. 2. Investment firms and market operators providing portfolio compression shall make public through an APA the volumes of transactions subject to portfolio compressions and the time they were concluded within the time limits specified in Article 10. 3. Investment firms and market operators that are providers of post-trade risk reduction services shall keep complete and accurate records of the transactions referred to in paragraph 1 of this Article that are not already recorded or reported in accordance with Regulation (EU) No 648/2012. Those investment firms and market operators shall make those records available to the relevant competent authority or ESMA promptly upon request. 4. The Commission is empowered to adopt delegated acts in accordance with Article 50 to supplement this Regulation by specifying: (a) post-trade risk reduction services for the purposes of paragraph 1; (b) the transactions to be recorded pursuant to paragraph 3.