Operational risks that may be posed by key participants
Article 67
1. A CSD shall, on an ongoing basis, identify the key participants in the securities settlement system that it operates based on the following factors: (a) their transaction volumes and values; (b) material dependencies between its participants and its participants' clients, where the clients are known to the CSD, that might affect the CSD; (c) their potential impact on other participants and the securities settlement system of the CSD as a whole in the event of an operational problem affecting the smooth provision of services by the CSD. For the purposes of point (b) in the first subparagraph, the CSD shall also identify the following: (i) the participants' clients responsible for a significant proportion of transactions processed by the CSD; (ii) the participants' clients whose transactions, based on their volumes and values, are significant relative to the respective participants' risk-management capacity. 2. A CSD shall review and keep the identification of the key participants up-to-date on an ongoing basis. 3. A CSD shall have clear and transparent criteria, methodologies and standards in order to ensure that key participants meet the operational requirements. 4. A CSD shall, on an ongoing basis, identify, monitor, and manage the operational risks that it faces from key participants. For the purposes of the first subparagraph, the operational risk-management system referred to in Article 70 shall also provide for rules and procedures to gather all relevant information about their participants' clients. The CSD shall also include in the agreements with its participants all terms necessary to facilitate the gathering of that information.