Article 3
Intragroup transactions
1. In relation to a non-financial counterparty, an intragroup trans-
action is an OTC derivative contract entered into with another
counterparty which is part of the same group provided that both
counterparties are included in the same consolidation on a full basis
and they are subject to an appropriate centralised risk evaluation,
measurement and control procedures and that counterparty is established
in the Union or, if it is established in a third country, the Commission
has adopted an implementing act under Article 13(2) in respect of that
third country.
2. In relation to a financial counterparty, an intragroup transaction is
any of the following:
(a) an OTC derivative contract entered into with another counterparty
which is part of the same group, provided that the following
conditions are met:
(i) the financial counterparty is established in the Union or, if it is
established in a third country, the Commission has adopted an
implementing act under Article 13(2) in respect of that third
country;
(ii) the other counterparty is a financial counterparty, a financial
holding company, a financial institution or an ancillary services
undertaking subject to appropriate prudential requirements;
(iii) both counterparties are included in the same consolidation on a
full basis; and
(iv) both counterparties are subject to appropriate centralised risk
evaluation, measurement and control procedures;
(b) an OTC derivative contract entered into with another counterparty
where both counterparties are part of the same institutional
protection scheme, referred to in Article 80(8) of Directive
2006/48/EC, provided that the condition set out in point (a)(ii) of
this paragraph is met;
(c) an OTC derivative contract entered into between credit institutions
affiliated to the same central body or between such credit institution
and the central body, as referred to in Article 3(1) of Directive
2006/48/EC; or
(d) an OTC derivative contract entered into with a non-financial
counterparty which is part of the same group provided that both
counterparties are included in the same consolidation on a full basis
and they are subject to an appropriate centralised risk evaluation,
measurement and control procedures and that counterparty is established in the Union or in a third-country jurisdiction for which the
Commission has adopted an implementing act as referred to in
Article 13(2) in respect of that third country.
3. For the purposes of this Article, counterparties shall be considered
to be included in the same consolidation when they are both either:
(a) included in a consolidation in accordance with Directive
83/349/EEC or International Financial Reporting Standards (IFRS)
adopted pursuant to Regulation (EC) No 1606/2002 or, in relation
to a group the parent undertaking of which has its head office in a
third country, in accordance with generally accepted accounting
principles of a third country determined to be equivalent to IFRS
in accordance with Regulation (EC) No 1569/2007 (or accounting
standards of a third country the use of which is permitted in
accordance with Article 4 of that Regulation); or
(b) covered by the same consolidated supervision in accordance with
Directive 2006/48/EC or Directive 2006/49/EC or, in relation to a
group the parent undertaking of which has its head office in a third
country, the same consolidated supervision by a third-country
competent authority verified as equivalent to that governed by the
principles laid down in Article 143 of Directive 2006/48/EC or in
Article 2 of Directive 2006/49/EC.