Fmia Agreement

Credit Suisse reserves the right to add or remove financial instruments and/or asset classes. The Financial Market Infrastructures Act (FINFRAG) is a Swiss law regulating financial markets, in particular derivatives. It was initially adopted by the Swiss Federal Assembly on 19 June 2015 and entered into force on 1 January 2016. The objective of the legislation is to reduce systemic counterparty and operational risk and to help prevent the future collapse of the financial system. FinfraG is designed as the Swiss equivalent of regulatory measures in the United States and the European Union, such as Dodd-Frank and EMIR/MiFID. FinfraG defines different types of counterparty rankings in relation to the OTC derivatives market, the main financial and non-financial counterparties (CCI and NFC). The applicable obligations are defined on the basis that the classified counterparty exceeds certain thresholds. In addition, FinfraG requires the classification of third-country companies and fully and partially exempted counterparties. There is no obligation for individuals, as for other counterparties (exceptions may apply, see also «Notification»).

FinfraG intends to introduce significant changes in the OTC derivatives market and aims to increase transparency, reduce counterparty and operational risk in transactions and improve market integrity and supervision. Asset classes officially authorised for trading on the IMM market, in accordance with section 2 «Instruments» of the Codes The new legislation applies widely to all companies established in Switzerland that trade in derivative financial instruments. Firms make one of four classifications of counterparties (see Figure 1), depending on the nature of the transaction, the volume and nature of derivatives trading. These categories in turn determine the requirements of the FinfraG company. The standard generally defines derivatives as financial contracts that are not spot transactions and whose value is derived from an underlying factor (for example. B an interest rate, an exchange rate or a commodity price index). Electricity and gas derivative contracts are excluded, under certain conditions, from the scope of this definition. . .