Section 13–1 Conditions for carrying on activity as a central counterparty
(1) Central counterparty operations may only be carried on by a central counterparty authorised by the ministry.
(2) A central counterparty shall be organised as a public limited company. The ministry may by regulations or individual decision make exceptions from this provision.
(3) Board members, the general manager and others participating in the actual management of a central counterparty shall have relevant qualifications and professional experience, be of good repute, and otherwise not have displayed improper conduct giving reason to presume that the position or office will not be discharged in a satisfactory manner. Any replacement of board members or general manager shall be notified to Finanstilsynet pursuant to section 9-9 third subsection.
(4) Any owner of a substantial holding in a central counterparty shall be deemed fit to ensure sound and prudent management of the undertaking. Section 9-10 is applicable in the event of changes in the shareholder structure.
(5) A central counterparty shall have a risk committee. The risk committee shall oversee the undertaking's risk management, and report to the board of directors. The ministry may by regulations make further provision regarding the risk committee's composition and tasks. (6) The ministry may give a foreign central counterparty that has been authorised to conduct counterparty operations and is subject to satisfactory supervision in its home state authorisation to conduct counterparty operations in Norway. The ministry may by regulations or individual decision make exceptions from this provision in respect of foreign central counterparties.
Section 13–2 Capital adequacy and liquidity
(1) A central counterparty shall ensure that it at all times has sufficient security, financial resources and liquidity to fulfil its obligations.1
1
(2) A central counterparty shall have own funds in an amount equivalent to at least EUR 7.5 million. The ministry may by regulations stipulate what are to be regarded as own funds. (3) A central counterparty shall on a continuous basis calculate and require the provision of sufficient security for the performance of contracts that it enters into as a party or otherwise guarantees the performance of.
(4) The ministry may by regulations or individual decision impose further requirements on central counterparties' security, financial resources and liquidity. Further, the ministry may by regulations make provision concerning the supervisory authorities' oversight and approval of models used by central counterparties to fulfil subsections (1) to (3) of this section.
Section 13–3 Central counterparty activity
(1) A central counterparty shall have in place satisfactory systems for the management of risk attending its activity.
(2) A central counterparty shall have clear, non-discriminatory and objective rules for participation in the counterparty arrangement.
(3) A central counterparty may only pursue activities that are naturally related to the conduct of counterparty activity. Finanstilsynet may order a central counterparty to keep related activities separate from its counterparty activity.
(4) The ministry may by regulations make further provision to the effect that, notwithstanding other legislation, a central counterparty may as part of its counterparty activity furnish a guarantee instead of entering as a party. The ministry may also by regulations make further provision regarding the organisation of a central counterparty's activity, including imposing requirements on the treatment of participants' and clients' assets, and to the effect that provisions of the Bankruptcy Act and the Satisfaction of Claims Act shall not apply to such participants' or clients' assets.
Section 13–4 Confidentiality and information requirement
(1) Employees, officers and other persons with determinative influence in a central counterparty shall treat as confidential any information about the personal or business circumstances of others which may come to their knowledge in the course of their work, except as otherwise prescribed in law or regulations.
(2) The duty of confidentiality under subsection (1) shall not prevent employees, officers or other persons with determinative influence in a central counterparty from supplying a regulated market with information necessary to enable the regulated market to discharge its obligations under the Act on Regulated Markets section 27.
(3) The ministry may by regulations prescribe exceptions from the confidentiality requirement under subsections (1) and (2), and may make further provision regarding the obligation to supply information, including rules regarding the purpose for which the information may be used, and also if and to what extent payment may be charged for expenses incurred in supplying the information. The ministry may by regulations also make provision regarding a central counterparty's obligation to publish information about its activity.
(1) Participation in a counterparty arrangement on behalf of clients is confined to investment firms, credit institutions or other undertakings engaged in business activity covered by section 2–1. The term counterparty arrangements means arrangements for direct access, through membership, participation or by other means, to services offered by central counterparties as part of their counterparty activity.
(2) The ministry may by regulations make further provision concerning Norwegian investment firms’ and regulated markets’ access to foreign counterparty arrangements.
(3) The ministry may by regulations make further provision concerning conditions for participation in counterparty arrangements, including concerning participants' treatment of clients' assets, and to the effect that provisions of the Bankruptcy Act and the Satisfaction of Claims Act shall not apply to such participants' or clients' assets.
Section 13–6 Supplementary rules
The ministry may by regulations impose further requirements on counterparty activity and make provision for revocation of authorisation to carry on activity as a central counterparty where this is deemed necessary in the interest of secure, orderly and efficient counterparty operations.
Chapter 14 Set-off of certain financial instruments