Regulatory Alerts2015-06-01
Amendment of Decision No. 12 on Securities and Derivatives Regulations
The Capital Markets Authority of Lebanon amended Decision No. 12 to establish stricter correspondent eligibility and comprehensive margin requirements for financial intermediaries trading securities and derivatives. The revised regulations mandate that intermediaries transact only with correspondents holding Investment Grade sovereign ratings or US regulatory licenses, while enforcing gross-margin payments, daily position revaluation, and strict cash account segregation. Furthermore, the amendments standardize initial margins at twenty percent of notional value and maintenance margins at seventy-five percent, with specific provisions for futures contracts and short options to ensure robust client protection.
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