Financial Markets Act, 2012 (Act No. 19 of 2012)RegulationsFinancial Markets Act RegulationsChapter VI : Central Counterparties41. Interoperability arrangements41.2 Provision of margins among central counterparties |
| (1) | A central counterparty must distinguish in accounts the assets and positions held for the account of central counterparties with whom it has entered into an interoperability arrangement. |
| (2) | If a central counterparty, which enters into an interoperability arrangement with another central counterparty, only provides initial margins to that central counterparty under a security financial collateral arrangement, the receiving central counterparty must have no right of use over the margins provided by the other central counterparty. |
| (3) | Collateral received in the form of securities must be deposited with (third party) custodians. |
| (4) | The assets referred to in subregulations (1) and (2) must be available to the receiving central counterparty only in case of default of the central counterparty which has provided the collateral in the context of an interoperability arrangement. |
| (5) | In case of default of the central counterparty which has received the collateral in the context of an interoperability arrangement, the collateral referred to in subregulations (1) and (2) must be readily returned to the providing central counterparty. |