International Financial Services Centres Authority (Market Infrastructure Institutions) Regulations, 2021 Chapter IV GENERAL OBLIGATIONS OF A RECOGNISED STOCK EXCHANGE AND A RECOGNISED CLEARING CORPORATION
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Risk management frameworks require exchanges to set position limits and clearing corporations to maintain capital, collateral, testing and operational safeguards. Recognised stock exchanges must establish detailed product-specific position-limit frameworks. Recognised clearing corporations must maintain risk ... Summary
Risk management frameworks require exchanges to set position limits and clearing corporations to maintain capital, collateral, testing and operational safeguards.
Recognised stock exchanges must establish detailed product-specific position-limit frameworks. Recognised clearing corporations must maintain risk management frameworks aligned with the CPMI-IOSCO Principles for Financial Market Infrastructures, adopt globally consistent margining practices, maintain sufficient capital for key risks, and conduct stress and liquidity testing. Eligible collateral includes cash, specified securities and gold, while cash and cash equivalents must constitute at least 50% of total liquid assets. Clearing corporations must also be ring-fenced from holding companies and maintain additional capital for orderly recovery or wind-down.
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