Act on Securities Trading (Securities Trading Act)

Part 7. Securities settlement

Chapter 17. OTC derivatives, central counterparties and trade repositories

Section 17-1.OTC derivatives, central counterparties and trade repositories

(1) The EEA Agreement Annex IX No. 31bc (Regulation (EU) No. 648/2012 on OTC derivatives, central counterparties and trade repositories (EMIR), as amended by
a.Regulation (EU) No. 1002/2013
b.Directive 2014/59/EU
c.Regulation (EU) 2015/1515
d.Directive (EU) 2015/849
e.Regulation (EU) No. 600/2014
f.Regulation (EU) No. 575/2013
g.Regulation (EU) 2017/610
h.Regulation (EU) 2017/979
i.Regulation (EU) 2019/460
j.Regulation (EU) 2019/834
k.Regulation (EU) 2019/876
l.Regulation (EU) 2015/2365
m.Regulation (EU) 2017/2402

applies as Norwegian law with such modifications as follow from Annex IX, Protocol 1 to the Agreement and the Agreement in general.

(2) The ministry may by regulations make further provision on OTC derivatives, central counterparties and trade repositories.
(3) The ministry may by regulations make amendments to, including exemptions from, the provisions implemented in subsection (1) to implement Norway’s obligations under the EEA Agreement.

Section 17-2.National supervisory authority

Finanstilsynet is the competent authority under the provisions implemented in section 17-1 subsection (1) or in regulations supplementing those provisions.

Section 17-3.Obligation of confidentiality and surrender of information

(1) Anyone performing services or work for a central counterparty shall treat as confidential any information about the personal or business affairs of others which comes to their knowledge in the course of their work, except as otherwise prescribed by law or regulations.
(2) The obligation of confidentiality under subsection (1) shall not prevent the surrender to a regulated market of such information as is necessary for that regulated market to comply with its obligations under section 12-5.
(3) Where the EFTA Court hears a case concerning the provisions implemented in section 17-1 subsection (1) or in regulations supplementing those provisions, any person may surrender to the Court, without regard to any statutory obligation of confidentiality, such information as the Court may require under the Agreement on the European Economic Area and the Agreement between the EFTA States on the Establishment of a Surveillance Authority and a Court of Justice.
(4) The ministry may by regulations make further provision as to the surrender obligation under subsections (1) and (2), including as to restrictions on the surrender obligation and the purposes for which the information may be used, as well as to the extent to which payment may be required in respect of the costs of such surrender.

Section 17-4.Organisation of a central counterparty

(1) A central counterparty shall be organised as a public limited company.
(2) The ministry may by regulations or administrative decision derogate from this section.

Section 17-5.Participation in a central counterparty on behalf of a client

Participation in a central counterparty on behalf of a client is confined to investment firms, credit institutions or undertakings engaged in activities falling within the scope of section 2-1.

Section 17-6.Authorisation from the district court and assistance from the police

(1) On-site inspection pursuant to EMIR Article 63 as implemented in section 17-1 subsection (1) requires authorisation from the district court.
(2) Finanstilsynet may request police assistance to execute the court’s on-site inspection decision.
(3) A petition for authorisation pursuant to subsection (1) shall be presented by Finanstilsynet or the EFTA Surveillance Authority to the district court in the locality where it is most practical to do so. The court shall render its decision by order. An appeal against such order shall not have suspensive effect. The Criminal Procedure Act section 201, subsection (1); sections 117 to 120, cf. section 204; section 207; section 208; section 209; section 213 and chapter 26 and the Public Administration Act section 15, subsection (2), apply insofar as appropriate. If prior announcement of an on-site inspection can be omitted pursuant to Article 63 of EMIR, cf. section 17-1, and Finanstilsynet or the EFTA Surveillance Authority so requests, the party that is the object of such petition shall not be given prior notice of the petition or the order.

Section 17-7.Enforcement

Finanstilsynet shall verify that the basis for enforcement is authentic pursuant to the enforcement provisions of EMIR Article 68 no. 4 as implemented in section 17-1 subsection (1).

Section 17-8.Relationship to section 7-3 of the Satisfaction of Claims Act

A central counterparty may take measures as mentioned in EMIR Article 48(5) to (7) without regard to section 7-3 first subsection of the Satisfaction of Claims Act.

Section 17-9.Withdrawal of central counterparty’s authorisation

Finanstilsynet may withdraw, in whole or in part, authorisations granted under Article 17 of EMIR, cf. section 17-1, if the undertaking seriously or systematically infringes Article 4 or 15 of the SFTR, cf. section 17A-1, or regulations made to supplement this regulation, thus giving reason to fear that continuation of the activity may harm confidence in the securities market or the institutions operating in the market.