Regulatory Alerts2020-01-26
Guidelines on the Regulatory Treatment of Banks’ Exposures to Central Counterparties
The Saudi Arabian Monetary Authority issued these guidelines to establish the regulatory treatment of banks' exposures to Central Counterparties regarding capital, large exposures, and leverage ratios. The document mandates specific risk weights for qualifying and non-qualifying CCPs, exempts qualifying CCP exposures from large exposure limits, and requires banks to obtain a Non-Objection for clearing membership applications. Additionally, banks must report exposures using specific Basel templates, include CCP risks in their internal capital and liquidity assessments, and report transactions to an authorized trade repository.
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