142. Clearing obligation procedure

(1) The Regulator may make Rules specifying —
(a) a class of OTC Derivatives that shall be subject to the clearing obligation;
(b) the date or dates from which the clearing obligation takes effect in respect of such class of OTC Derivatives, including any phase-in and the categories of counterparties to which the obligation applies; and
(c) the minimum remaining maturity of the OTC Derivative Contracts referred to in section 141(1)(b)(ii).
(2) With the overarching aim of reducing systemic risk, the Regulator may take into consideration the following criteria —
(a) the degree of standardisation of the contractual terms and operational processes of the relevant class of OTC Derivatives;
(b) the volume and liquidity of the relevant class of OTC Derivatives;
(c) the availability of fair, reliable and generally accepted pricing information in the relevant class of OTC Derivatives;
(d) the interconnectedness between counterparties using the relevant classes of OTC Derivatives;
(e) the anticipated impact on the levels of Counterparty Credit Risk between counterparties;
(f) the impact on competition in the Abu Dhabi Global Market;
(g) the expected volume of the relevant class of OTC Derivatives;
(h) whether more than one Recognised Clearing House already clears the same class of OTC Derivatives;
(i) the ability of the relevant Recognised Clearing Houses to handle the expected volume and to manage the risk arising from the Clearing of the relevant class of OTC Derivatives;
(j) the type and number of counterparties active, and expected to be active within the market for the relevant class of OTC Derivatives;
(k) the amount of time a counterparty subject to the clearing obligation needs in order to put in place arrangements to clear its OTC Derivative Contracts through a Recognised Clearing House; and
(l) the risk management and the legal and operational capacity of the range of counterparties that are active in the market for the relevant class of OTC Derivatives and that would fall within the scope of the clearing obligation.