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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Settlement guarantee funds secure trade completion through minimum corpus, stress testing, approved contribution frameworks, and replenishment mechanisms. Every recognised clearing corporation must establish and maintain a Settlement Guarantee Fund to guarantee settlement of trades executed on a stock ... Summary
Settlement guarantee funds secure trade completion through minimum corpus, stress testing, approved contribution frameworks, and replenishment mechanisms.
Every recognised clearing corporation must establish and maintain a Settlement Guarantee Fund to guarantee settlement of trades executed on a stock exchange. The fund corpus must meet the prescribed minimum based on monthly stress-test value or USD 1 million, whichever is higher, and must be adequate to address clearing member defaults. Periodic stress tests must assess corpus sufficiency. An Authority-approved framework must govern contributions by clearing members, the clearing corporation and stock exchange, and provide for replenishment following a shortfall.
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