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.