Cash composition requirement tightened for additional capital and margins, with stricter cash-equivalent and eligible securities valuation rules. Regulator increases the required minimum cash composition of additional capital and margins and maintains that mark-to-market margins be collected in cash, bank guarantees and FDRs. Cash equivalents are defined to include specified FDRs, qualifying bank guarantees, government securities and units of liquid or government-securities mutual funds with prescribed haircuts; bank guarantees must be from banks meeting the net worth threshold and exchanges must cap any single-bank exposure of guarantee funds. Eligible non-cash securities for additional capital/margins are Group I equities and mutual fund units subject to VaR-based haircuts and daily valuation; base minimum capital securities are Group I shares subject to a standard haircut and weekly valuation.
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Provisions expressly mentioned in the judgment/order text.
Cash composition requirement tightened for additional capital and margins, with stricter cash-equivalent and eligible securities valuation rules.
Regulator increases the required minimum cash composition of additional capital and margins and maintains that mark-to-market margins be collected in cash, bank guarantees and FDRs. Cash equivalents are defined to include specified FDRs, qualifying bank guarantees, government securities and units of liquid or government-securities mutual funds with prescribed haircuts; bank guarantees must be from banks meeting the net worth threshold and exchanges must cap any single-bank exposure of guarantee funds. Eligible non-cash securities for additional capital/margins are Group I equities and mutual fund units subject to VaR-based haircuts and daily valuation; base minimum capital securities are Group I shares subject to a standard haircut and weekly valuation.
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