Exposure is marked to market daily (cash borrowed or lent under a repurchase agreement or a reverse repurchase agreement may be included in the Trading Book even if not marked to market provided that the residual maturity of the borrowing or lending is one month or less);
Collateral is adjusted to take account of changes in the value of the Securities or commodities involved;
(c) the agreement or transaction provides for the
Authorised Firm's claims to be automatically and immediately offset against its Counterparty's claims if the latter defaults; and
(d) such agreements and transactions are confined to their accepted and appropriate use and artificial transactions, especially those not of a short-term nature, are excluded.
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]