Which statement is correct regarding TES offer conditions?

The correct answer indicates that both statements regarding TES offer conditions are accurate.

Firstly, when it comes to the confirmation of TES offers, it is indeed the case that only the primary counterparty can confirm these offers. This is important because it ensures that there is a clear and accountable party responsible for validating the transaction, which aids in maintaining the integrity and reliability of the trading process.

Secondly, the requirement that these offers must be confirmed within a specified time limit is crucial to the functionality of trading operations. Time limits help ensure that the offers remain relevant and that the trading activities are conducted in a timely manner, preventing stale offers from lingering in the market which could lead to confusion or inefficiencies.

When combined, these two conditions underline the structured nature of the TES system, highlighting the necessity for accountability and timeliness in trade confirmations, thus ensuring that the trading environment remains orderly.