Regulatory Alerts2020-09-11
Added · Updated
Non-centrally Cleared OTC Derivatives Transactions - Margin and Other Risk Mitigation Standards
The Hong Kong Monetary Authority issued Supervisory Policy Manual CR-G-14 to establish margin and risk mitigation standards for non-centrally cleared over-the-counter derivatives transactions. The policy mandates that all authorized institutions implement robust frameworks to manage counterparty credit risk associated with these financial instruments. These requirements ensure that institutions maintain adequate collateral and adhere to standardized procedures for the exchange of margin payments.
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