These requirements were initially based on Article 4(3) 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, as amended from time to time ("EMIR"), allowing clients to satisfy the clearing obligation for OTC derivatives.
Subsequently, this was transposed in Article 30 of Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments, as amended from time to time ("MiFIR") in relation to exchange-traded derivatives ("ETDs").
To ensure a harmonized approach to indirect clearing arrangements across both EMIR and MiFIR regulations, delegated regulations[1] to impose obligations on the Direct Client that facilitate indirect clearing services.
The information necessary to describe the implications of clearing services through ING Luxembourg is available here.