Financial Markets Act, 2012 (Act No. 19 of 2012)RegulationsFinancial Markets Act RegulationsChapter VI : Central Counterparties38. Collateral requirements38.4 Valuing collateral |
(1) | A licensed central counterparty must establish and implement policies and procedures to— |
(a) | mark-to-market its collateral on a near to real time basis; and |
(b) | monitor on a near to real time basis the credit quality, market liquidity and price volatility of each asset accepted as collateral. |
(2) | A central counterparty must review the adequacy of its valuation policies and procedures— |
(a) | on a regular basis, and at least annually; or |
(b) | whenever a material change occurs that affects the central counterparty’s risk exposure. |