Regulatory Alerts2014-02-10
Regulations on Financial Derivative Transactions
Issued by Lebanon's Capital Markets Authority and Central Bank, Decision 12 establishes comprehensive regulations governing financial derivative transactions. The framework restricts intermediaries from executing derivative and off-exchange Forex trades with non-residents unless they are NFA- or CFTC-licensed US entities or BBB-rated foreign parties, while mandating strict margin calculations, daily revaluation, and gross position accounting. Additionally, the rules require segregated client cash accounts, prohibit using client credits for internal benefit, and limit margin-financing facilities to ensure robust risk management.
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