Regulation 42 - Obligation of Clearing Corporation in Commodity Derivatives
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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Financial guarantee for physical commodity derivatives settlement must cover good delivery meeting contractual title, quality and quantity requirements. Recognised clearing corporations handling physically settled commodity derivatives must ensure a financial guarantee for trade settlement, including good ... Summary
Financial guarantee for physical commodity derivatives settlement must cover good delivery meeting contractual title, quality and quantity requirements.
Recognised clearing corporations handling physically settled commodity derivatives must ensure a financial guarantee for trade settlement, including good delivery. Good delivery requires goods to be capable of transferring title and to conform to the quality and quantity specifications of the relevant exchange contract.
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