Sets out the minimum capital and financial resources, and other financial and margin requirements.
Guidelines on the Specification of Entities under Sub-paragraph (b)(vi) of the Definition of "Qualifying Deposit" in Paragraph 1(4) of the Second Schedule to the Securities and Futures (Financial and Margin Requirements for Holders of Capital Markets Services Licences) Regulations [FMR N01]
These guidelines apply to the following capital markets services (CMS) licensees which are:
- Dealing in securities and trading in futures contracts.
- Members of an approved exchange or designated clearing house.
They relate to risk-based capital computation before 3 April 2015 and financial returns before 1 July 2015.
The guidelines specify that no counterparty exposure is required to be computed for deposits provided to the Korea Securities Finance Corporation to meet margin requirements.