Regulation on OTC derivatives, central counterparties and trade repositories with regard to regulatory technical standards for risk-mitigation techniques for OTC derivative contracts not cleared by a central counterparty

This procedure sets out technical standards for managing risks associated with over-the-counter (OTC) derivative contracts that are not cleared through a central counterparty. It aims to enhance financial stability by ensuring these complex financial instruments are handled more safely.

These rules will affect financial institutions and companies using uncleared OTC derivatives. They introduce specific requirements for risk mitigation, impacting how these contracts are managed and reducing potential systemic risks in the financial markets.