Regulatory Alerts2023-04-12
COSOB Regulation No. 23-02 of April 12, 2023, Fixing the Management and Intervention Conditions of the Good Performance Guarantee Fund for Financial Market Operations and Contribution Calculation Rules
The Commission for the Organization and Supervision of Stock Exchange Operations (COSOB) issued Regulation No. 23-02 to establish the management framework and intervention conditions for the Good Performance Guarantee Fund covering settlement and delivery risks of financial market operations. The regulation mandates that Intermediaries in Stock Exchange Operations (IOBs) contribute to the fund through initial, individual, open position, and extraordinary guarantees, which are managed by the Central Securities Depository. It further defines the priority order for utilizing these guarantees during an IOB's default, the obligation for non-defaulting IOBs to replenish the joint guarantee, and the suspension procedures for non-compliant intermediaries.