3. A function that is essential to the real economy and financial markets shall be considered substitutable where it can be replaced in an acceptable manner and within a reasonable time frame thereby avoiding systemic problems for the real economy and the financial markets.
When assessing the substitutability of a function the following criteria shall be taken into account:
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(a)
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the structure of the market for that function and the availability of substitute providers;
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(b)
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the ability of other providers in terms of capacity, the requirements for performing the function, and potential barriers to entry or expansion;
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(c)
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the incentive of other providers to take on these activities;
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(d)
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the time required by users of the service to move to the new service provider and costs of that move, the time required for other competitors to take over the functions and whether that time is sufficient to prevent significant disruption depending on the type of service.
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