Financial Markets Act, 2012 (Act No. 19 of 2012)

Regulations

Financial Markets Act Regulations

Chapter VI : Central Counterparties

13. Risk management framework

13.3 Counterparty credit risk

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The risk management framework must, in the case of the central counterparty’s exposure to counterparty credit risk,—

(a)take into account the market risk, liquidity risk, legal risk and operational risk normally associated with counterparty credit risk; and
(b)ensure that the central counterparty—
(i)takes into account the creditworthiness of all relevant counterparties;
(ii)takes into account any relevant settlement and pre-settlement risk;
(iii)continuously monitors the utilisation of credit lines;
(iv)measures its current exposure gross and net of collateral in all relevant cases; and
(v)manages all relevant risk exposures at a counterparty and central counterparty-wide level.