According to the CMA, the central counterparty is a business association licensed to make commitments in connection with exchange transactions and over-the-counter capital market transactions, while the activity of the central counterparty is the commitment undertaken in connection with the fulfilment of the exchange transaction and over-the-counter capital market transaction by the clearing house and the central counterparty. The activity of the central counterparty can only be performed as an exclusive activity, except when it is performed by the clearing house. A Supervisory Authority licence is necessary for performing the central counterparty activities. The Supervisory Authority issues such licences to business associations which are entities with a registered office in the territory of the Republic of Hungary, and have a share capital of minimum HUF 20 million as well as liability insurance for at least HUF 100 million per claim and have at least one investment enterprise, credit institution or commodity exchange service provider along with a pre-contract concluded with a clearing house, and which comply with the relevant other provisions of the CMA.