Authorised Firm which has taken eligible financial Collateral for any transaction other than an equity Exposure, an SE Exposure, an OTC Derivative transaction, long settlement transaction or SFT may recognise the effect of such Collateral in accordance with Rules PIB 4.9.6 and PIB 4.9.7.
Authorised Firm must use either the:
Collateral Simplified Approach (FCSA) which adopts the treatment under PIB Rule 4.13.5 in relation to the composition of financial Collateral; or
Collateral Comprehensive Approach (FCCA) which adopts the treatment under PIB Rule 4.13.6;
to recognise the effect of eligible financial
Authorised Firm must apply the chosen approach consistently to its entire Non-Trading Book and must not use a combination of both approaches.
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]