Ordinance
on Financial Market Infrastructures and Market Conduct in Securities and Derivatives Trading
(Financial Market Infrastructure Ordinance, FinMIO)

(Art. 94 para. 4 and 97 para. 2 Fin­MIA)²⁶

¹ Trans­ac­tions with coun­ter­parties that are sub­ject to the clear­ing duty for the first time in ac­cord­ance with Art­icle 98 para­graph 2 or Art­icle 99 para­graph 2 Fin­MIA do not need to be cleared through a cent­ral coun­ter­party if they were con­cluded pri­or to sub­jec­tion to the clear­ing duty.

² De­riv­at­ives trans­ac­tions with coun­ter­parties which have their re­gistered of­fice or dom­i­cile in Switzer­land to which the de­riv­at­ives trad­ing pro­vi­sions do not ap­ply do not have to be cleared through a cent­ral coun­ter­party.

³ De­riv­at­ives trans­ac­tions in which a covered bond is­suer or a leg­al en­tity of a cov­er pool for covered bonds is in­volved do not have to be cleared via a cent­ral coun­ter­party if the fol­low­ing pre­requis­ites are met:

a.

The de­riv­at­ives trans­ac­tion serves the sole pur­pose of hedging in­terest rate or cur­rency risks arising from the covered bond for the cov­er pool.

b.

The de­riv­at­ives trans­ac­tion is not ter­min­ated in the event of re­struc­tur­ing or bank­ruptcy pro­ceed­ings brought against the covered bond is­suer or the leg­al en­tity of the cov­er pool.

c.

The coun­ter­party of the covered bond is­suer or of the leg­al en­tity of the cov­er pool is at least pari passu with the covered bond cred­it­ors, ex­cept in cases where:

the coun­ter­party is the de­fault­ing or af­fected party; or

the coun­ter­party re­nounces pari passu status.

d.

The oth­er de­riv­at­ives trans­ac­tions entered in­to as part of the net­ting set are linked to the cov­er pool.

e.

The cov­er pool's col­lat­er­al ra­tio is at least 102%.²⁷