system

a formal arrangement: — between three or more participants, excluding the system operator of that system, a possible settlement agent, a possible central counterparty, a possible clearing house or a possible indirect participant, with common rules and standardised arrangements for the clearing, whether or not through a central counterparty, or execution of transfer orders between the participants — governed by the law of a Member State chosen by the participants; the participants may, however, only choose the law of a Member State in which at least one of them has its head office, and — a ainmneofar, gan dochar do choinníollacha níos déine eile a mbeidh feidhm ghinearálta leo a leagtar síos leis an dlí náisiúnta, mar chóras agus a cuireadh in iúl don Údarás Eorpach um Urrúis agus Margaí ag an mBallstát a mbeidh a dhlí infheidhme, tar éis don Bhallstát sin a bheith sásta i dtaobh leordhóthanacht rialacha an chórais. Subject to the conditions in the first subparagraph, a Member State may designate as a system such a formal arrangement whose business consists of the execution of transfer orders as defined in the second indent of (i) and which to a limited extent executes orders relating to other financial instruments, when that Member State considers that such a designation is warranted on grounds of systemic risk. A Member State may also on a case-by-case basis designate as a system such a formal arrangement between two participants, without counting a possible settlement agent, a possible central counterparty, a possible clearing house or a possible indirect participant, when that Member State considers that such a designation is warranted on grounds of systemic risk. An arrangement entered into between interoperable systems shall not constitute a system