Net Overnight Open Position Limit excludes exchange currency derivatives and bans netting with OTC, requiring exchange-only close-outs. Positions in exchange-traded currency futures and options are excluded from banks' Net Overnight Open Position Limit; exchange positions cannot be netted with OTC positions and must be closed on the exchange. Trading member banks face a prescribed exchange position cap, and AD Category I banks must reduce positions to the specified limits by the compliance deadline, pursuant to directions issued under statutory foreign exchange powers.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Net Overnight Open Position Limit excludes exchange currency derivatives and bans netting with OTC, requiring exchange-only close-outs.
Positions in exchange-traded currency futures and options are excluded from banks' Net Overnight Open Position Limit; exchange positions cannot be netted with OTC positions and must be closed on the exchange. Trading member banks face a prescribed exchange position cap, and AD Category I banks must reduce positions to the specified limits by the compliance deadline, pursuant to directions issued under statutory foreign exchange powers.
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