Scope of Application
| No: 44047144 | Date(g): 27/12/2022 | Date(h): 4/6/1444 | Status: In-Force |
Effective from Jan 01 2023 - Dec 31 2022
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| 8.1. | This chapter applies to exposures to central counterparties arising from over-the counter (OTC) derivatives, exchange-traded derivatives transactions, securities financing transactions (SFTs) and long settlement transactions. Exposures arising from the settlement of cash transactions (equities, fixed income, spot foreign exchange and spot commodities) are not subject to this treatment.30 The settlement of cash transactions remains subject to the treatment described in chapter 25 of the Minimum Capital Requirements for Credit Risk. | ||
| 8.2. | When the clearing member-to-client leg of an exchange-traded derivatives transaction is conducted under a bilateral agreement, both the client bank and the clearing member are to capitalize that transaction as an OTC derivative.31 This treatment also applies to transactions between lower-level clients and higher level clients in a multi-level client structure. | ||
30 For contributions to prepaid default funds covering settlement-risk only products, the applicable risk weight is 0%.
31 For this purpose, the treatment in 8.12 would also apply.