PART FOURCONCENTRATION RISK

Article 42Exemption for commodity and emission allowance dealers

1

The provisions of this Part shall not apply to commodity and emission allowance dealers where all the following conditions are met:

a

the other counterparty is a non‐financial counterparty;

b

both counterparties are subject to appropriate centralised risk evaluation, measurement and control procedures;

c

the transaction can be assessed as reducing risks directly relating to the commercial activity or treasury financing activity of the non‐financial counterparty or of that group.

2

Investment firms shall notify the competent authority before using the exemption referred to in paragraph 1.