Recital 1

(1) To ensure consistency with Regulation (EU) No 648/2012 of the European Parliament and of the Council (3) and to ensure the proper functioning of the internal market, it is necessary to lay down in Directive 2009/65/EC of the European Parliament and of the Council (4) a uniform set of rules to address counterparty risk in derivative transactions performed by undertakings for collective investment in transferable securities (UCITS), where such transactions have been cleared by a central counterparty (CCP) that is authorised or recognised in accordance with that Regulation. Directive 2009/65/EC imposes regulatory limits on counterparty risk only in respect of over-the-counter (OTC) derivative transactions, irrespective of whether the derivatives have been centrally cleared. As central clearing arrangements mitigate the counterparty risk that is inherent in derivative contracts, it is necessary to take into consideration whether a derivative has been centrally cleared by a CCP that is authorised or recognised in accordance with Regulation (EU) No 648/2012 and to establish a level playing-field between exchange-traded and OTC derivatives, when determining the applicable counterparty risk limits. It is also necessary, for regulatory and harmonisation purposes, to remove counterparty risk limits only when the counterparties use CCPs that are authorised or recognised in accordance with Regulation (EU) No 648/2012 to provide clearing services to clearing members and their clients.

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Source: EUR-Lex (Cellar) · retrieved 2026-10-16 · Text as adopted (Official Journal); later amendments are not incorporated in this text.