Acting as a general clearing member

An investment services undertaking that acts as a general clearing member for other persons must have effective systems and controls to ensure that clearing services are provided only to persons who are suitable for this and who satisfy clear criteria set in advance by the investment services undertaking. It must impose appropriate requirements on those persons designed to reduce the risks to the investment services undertaking and to the market. There must be a written agreement between the investment services undertaking and the person concerned governing the rights and obligations arising in connection with this service.