Risk margin cap: combined VaR, extreme loss and mark-to-market on purchases limited to purchase value; exchanges must comply. Buy-side cash-market transactions must ensure that VaR margins, Extreme Loss margins and mark-to-market losses together do not exceed the purchase value. Sell-side transactions remain subject to the existing practice where VaR and Extreme Loss margins together do not exceed the sale value while mark-to-market losses are levied separately. Exchanges must modify bye-laws, notify members, implement and test software changes, and report implementation status.
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.
Risk margin cap: combined VaR, extreme loss and mark-to-market on purchases limited to purchase value; exchanges must comply.
Buy-side cash-market transactions must ensure that VaR margins, Extreme Loss margins and mark-to-market losses together do not exceed the purchase value. Sell-side transactions remain subject to the existing practice where VaR and Extreme Loss margins together do not exceed the sale value while mark-to-market losses are levied separately. Exchanges must modify bye-laws, notify members, implement and test software changes, and report implementation status.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
