These guidelines apply to capital markets services (CMS) licensees:
- dealing in securities and trading in futures contracts; and
- which are members of an approved exchange or designated clearing house
in respect of capital computations before 3 April 2015 and financial returns before 1 July 2015.
They specify how counterparty risk requirement should be computed for specified structured warrants in the following scenarios:
- Contracts unsettled at the end of or after the due date;
- Open contracts traded on an approved exchange other than a securities exchange or recognised group A exchange; and
- Contract which is offset by contra contract, forced-sale or buying-in transaction.