Central custody and management of financial contracts

(1) The supervisory authority or the resolution authority may require institutions and group entities, and the superordinate undertaking of a group in respect of the entire group, to keep all financial contracts in central custody and to manage them appropriately. Management may be carried out centrally for the group entities by an institution domiciled in Germany. The management of the financial contracts must in particular be designed such that 1. financial contracts can be located and reviewed within a short time, and 2. financial contracts are examined and classified by the institution or by group entities as to their significance for the institution or the group entities, and the material contract contents are recorded accordingly. The institution, the group entities, and the superordinate undertaking of a group in respect of the entire group, must maintain a system that also enables the evaluation, at short notice, of the financial contracts held in custody and managed.
(2) The supervisory authority or the resolution authority may 1. request information and evaluations concerning the financial contracts held in custody and managed within the meaning of subsection (1) from an institution or group entity at any time, 2. require the institution or group entity, and the superordinate undertaking of a group in respect of the entire group, to hold in custody and manage the financial contracts in a specified manner, or 3. require supplementary records of financial contracts from the institution or group entity.
(3) On direction of the supervisory authority or the resolution authority, a trade repository domiciled in Germany, within the meaning of Article 81 of Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (OJ L 201, 27.7.2012, p. 1), must make accessible to the supervisory authority or the resolution authority the information required for the performance of their respective tasks and mandates, and provide evaluations.
(4) Section 42(5) applies correspondingly.