16.1 Banks' exposures to Qualifying Central Counterparties related to clearing activities are exempted from the large exposures limit, however, these exposures are subject to the reporting requirements as defined in Article 5 of this regulation.

16.2 Banks' exposures to non-Qualifying Central Counterparties must be measured as the sum of the clearing exposures described in Article 16.4 and the non-clearing exposures described in Article 16.6, and is subject to the large exposure limit set out in Article 3 of this regulation.

16.3 The requirement related to connected counterparties set out in Article 4 of this regulation does not apply to exposures to central counterparties specifically related to clearing activities. For non-clearing exposures, the provisions related to connected counterparties fully apply.

16.4 Banks must calculate the following types of exposure as set out below:

16.4.1 Trade exposures: the exposure value of trade exposures must be calculated following the relevant provisions of this regulation (as for any other counterparty).

16.4.2 Segregated initial margin: the exposure value is zero.

16.4.3 Non-segregated initial margin: the exposure value is the nominal amount of the initial margin posted.

16.4.4 Pre-funded default fund contributions: the exposure value is the nominal amount of the funded contribution.

16.4.5 Unfunded default fund contributions: the exposure value is zero.

16.4.6 Equity stakes: the exposure value is the nominal amount.

16.5 For exposures where the Bank acts as a clearing member or where the Bank acts as client of a clearing member, the Bank must determine the counterparty to which the exposures must be assigned in accordance with the capital adequacy standards.

16.6 Any other exposure types not directly related to clearing services provided by the central counterparty must be measured according to the rules set out in this regulation, as for any other counterparty, and are subject to the large exposure limit.