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(On this page, all Capitalised terms shall refer to their corresponding definitions in the FCA's Handbook, available at https://www.handbook.fca.org.uk)
This page sets out relevant information regarding classification and regulatory obligations under:
Participants are responsible for determining their own regulatory classification and obligations under the applicable regime.OptAxe MTF may rely on representations made by participants for operational and reporting purposes but does not assume responsibility for verifying aparticipant's regulatory classification.
As an FCA-regulated UK Multilateral Trading Facility(MTF), OptAxe operates under UK EMIR. However, where participants are subject to EU EMIR, this page also outlines relevant provisions to facilitate cross-border compliance. This informatiion is provided for assistance, however, it is non-exhaustive and participants shall be responsible for their own ongoing compliance.
This page does not constitute legal advice and should not be relied upon as such. Participants should should seek their own independent legal and regulatory advice to determine their classification and obligations.
Participants must notify OptAxe in writing of their classification under UK EMIR and/or EU EMIR. This includes, but is not limited to, whether the participant is:
In the absence of notification to the contrary, OptAxe will treat the participant as a Financial Counterparty, notwithstanding the participant’s actual regulatory status, if different.
Both UK EMIR and EU EMIR impose the following categories of obligations on relevant counterparties engaged in over-the-counter (OTC) derivative transactions:
Certain standardised OTC derivatives are subjectto mandatory clearing through authorised Central Counterparties (CCPs). As ofthe date of this Schedule, these obligations do not currently apply to FX options or other FX derivatives.
Where any trades on the OptAxe MTF are not centrally cleared, counterparties may be subject to bilateral risk mitigation requirements, including:
All in-scope derivatives must be reported to an authorised Trade Repository (TR) by at least one counterparty. Participants are solely responsible for ensuring compliance with these reporting obligations.
OptAxe may assist participants by generating or transmitting Unique Transaction Identifiers (UTIs) or by supporting delegated or assisted reporting arrangements. Such services are subject to separate agreement and do not transfer legal responsibility for reporting from the participant to OptAxe.
Counterparties must assess whether their OTC derivatives trading activity exceeds the applicable clearing threshold in force from time to time for OTC foreign exchange derivatives, based on the aggregate average notional amount (AANA) over a 12-month period. Exceeding the applicable threshold may result in mandatory clearing and margin requirements. Participants should note potential divergence between UK and EU EMIR thresholds and monitor FCA or ESMA guidance for updates.
A participant may qualify as a Financial Counterparty under UK EMIR or EU EMIR if it is, for example:
Participants are responsible for determining their correct classification in accordance with applicable regulation.
Participants must promptly notify OptAxe in writing via email to compliance@optaxe.com or client portal of any change in their classification or clearing threshold status under UK EMIR or EU EMIR within 5 business days of the relevant change. Failure to notify may result in reporting errors or operational issues, for which OptAxe accepts no liability, and the participant shall be reponsible for any penalties, charges, costs or enforcement action taken against OptAxe resulting from such failure.