Guidelines
 Last Revised Date: 28 June 2021

Guidelines on Risk Mitigation Requirements for Non-Centrally Cleared Over-the-Counter Derivative Contracts

Provides guidance on the risk mitigation measures for dealing in Over-the-Counter (OTC) derivatives that are not centrally cleared.
Applies to: Exempt Capital Markets Services Entity
View Document Guidelines on Risk Mitigation Requirements for Non-Centrally Cleared Over-the-Counter Derivative Contracts (563.8 KB)

These guidelines apply to banks, merchant banks and finance companies which deal in capital markets products that are OTC derivatives and not centrally cleared by a clearing house.

They set out guidance on policies and procedures that the financial institution should put in place to govern the relationship with its counterparty in relation to:

  • Trading relationship
  • Trade confirmation
  • Valuation
  • Portfolio reconciliation
  • Portfolio compression
  • Dispute resolution