21.3.2014 Official Journal of the European Union L 85/1 II (Non-legislative acts) REGULATIONS COMMISSION DELEGATED REGULATION (EU) No 285/2014 of 13 February 2014 supplementing Regulation (EU) No 648/2012 of the European Parliament and of the Council with regard to regulatory technical standards on direct, substantial and foreseeable effect of contracts within the Union and to prevent the evasion of rules and obligations (Text with EEA relevance) THE EUROPEAN COMMISSION, Having regard to the Treaty on the Functioning of the European supervisory and enforcement arrangements have not yet been declared equivalent to the requirements laid down in that Regulation. Union, (3)  Certain information on contracts concluded by third country entities would still only be available to third country competent authorities.  Therefore  Union competent authorities should closely cooperate with Having regard to Regulation (EU) No 648/2012 of the those authorities in order to ensure that the relevant European Parliament and of the Council of 4 July 2012 on provisions are applied and enforced. OTC derivatives, central counterparties and trade repositories ('), and in particular Article 4(4) and point (¢) of Article 11(14) thereof, (4)  Given that a technical term is necessary for a compre- hensive understanding of the appropriate technical stan- dards, this term should be defined. Whereas: (5)  OTC derivative contracts concluded by entities estab- lished in third countries covered by a guarantee (1) Given the broad variety of OTC derivative contracts, in provided by entities established in the Union create a order to determine when an OTC derivative contract may financial risk for the guarantor established in the be considered to have a direct, substantial and foreseeable Union. Furthermore, given that the risk would depend effect within the Union and cases where it is necessary or on the size of the guarantee granted‘by .fmanc1al counter- appropriate to prevent the evasion of rules and parties in qrder to cover OTC derlvau.ve contracts and obligations arising from any provision of Regulation given the interconnections between financial counter- (EU) No 648/2012, a criteria based approach should be parties compared to non-financial counterparties, only adopted. OTC derivative contracts concluded by entities estab- lished in third countries that are covered by a guarantee which exceeds certain quantitative thresholds and is provided by financial counterparties established in ) ) ) the Union should be considered as having a direct, (2 Given that pursuant to Amde 13(3) of Regulfltlon (EU) substantial and foreseeable effect in the Union. No 648/2012, the provisions of that Regulation would be deemed fulfilled when at least one of the counter- parties is established in a country for which the Commission has adopted an implementing act declaring (6)  Financial counterparties established in third countries can equivalence in accordance with Article 13(2) of Regu- lation (EU) No 648/2012, these regulatory technical standards should apply to contracts where both counter- parties are established in a third country whose legal, () O] L 201, 27.7.2012, p. 1. enter into OTC derivative contracts through their Union branches. Given the impact of the activity of those branches on the Union market, OTC derivative contracts concluded between those Union branches should be considered to have a direct, substantial and foreseeable effect within the Union.