Entire Section

  • PIB A4.11.4 PIB A4.11.4

    When calculating the Exposures of an Authorised Firm, the Authorised Firm must include Trading Book Exposures and Non-Trading Book Exposures to:

    (a) an individual Counterparty;
    (b) group of Closely Related Counterparties;
    (c) Connected Counterparties; and,
    (d) Transactions, schemes or Funds.
    Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]
    [Amended] DFSA RMI293/2021 (Made 24th February 2021). [VER38/04-21]

    • PIB A4.11.4 Guidance

      1. An individual Counterparty is a natural or legal person, which include governments, local authorities, public sector enterprises (PSEs), trusts, corporations, unincorporated businesses and non-profit-making bodies.
      2. Examples of a Counterparty include:
      a. the customer or borrower;
      b. where the Authorised Firm is providing a guarantee, the person guaranteed;
      c. for a Derivatives contract, the person with whom the contract was made;
      d. for most exchange-traded contracts involving a central clearing mechanism, that central clearing mechanism; and
      e. where a bill held by an Authorised Firm has been accepted by another Financial Institution, the acceptor.
      Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]