AMI 7.2.4

(1) A Clearing House must have effective means to address risks relating to:
(a) custody of its own assets, in accordance with (2); and
(b) investments, in accordance with (3).
(2) For the purposes of (1)(a), a Clearing House must:
(a) hold its own assets with entities which are Licensed by the DFSA or a Financial Services Regulator for holding deposits or providing custody, as appropriate;
(b) be able to have prompt access to its assets when required; and
(c) regularly evaluate and understand its exposures to entities which hold its assets.
(3) For the purposes of (1)(b), a Clearing House must ensure that:
(i) it has an investment strategy which is consistent with its overall risk-management strategy and is fully disclosed to its Members and other participants using its facilities; and
(ii) its investments comprise instruments with minimal credit, market, and liquidity risks. For this purpose, the investments must be secured by, or be claims on, high-quality obligors, allowing for quick liquidation with little, if any, adverse price effect.
Derived from RM118/2013 [VER15/07-13]