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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Rulebook Modules
Authorised Market Institutions (AMI) [VER18/02-17]
Part 3 Licensing Requirements
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases
Financial Markets Tribunal

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(2 versions)
Jul 14 2013 - Aug 20 2014Aug 21 2014 onwards

AMI 5.5.4

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(1) An Authorised Market InstitutionG must, subject to (3) and (4), have and maintain at all times:
(a) the minimum financial resource requirement in (2); and
(b) additional financial resources of a type acceptable to the DFSAG which are adequate in relation to the nature, size and complexity of its business to ensure that there is no significant risk that liabilities cannot be met as they fall due.
(2) The minimum financial resource requirement referred to in (1)(a) is:
(a) an amount equal to one half of the estimated gross operating costs of the Authorised Market InstitutionG for the next twelvemonth period; or
(b) such other capital amount as may be specified by the DFSAG .
(3) The assets held by an Authorised Market InstitutionG for the purposes of meeting the financial resources requirements in (1):
(a) must be of high quality and sufficiently liquid in order to allow the Authorised Market InstitutionG to meet its current and projected operating expenses under a range of adverse scenarios, including in adverse market conditions; and
(b) must be held, where it comprises cash, by an entity which is a BankG , or a financial institution authorised and supervised by a Financial Services RegulatorG acceptable to the DFSAG with respect to the activity of deposit taking.
(4) An Authorised Market InstitutionG must have systems and controls to enable it to determine and monitor whether its financial resources are sufficient for the purposes of the requirement in (1). For this purpose, the systems and controls of an Authorised Market InstitutionG must address the following factors, with any other factors that are relevant and appropriate to its operations model:
(a) the nature, scale, and complexity of the activities and risks associated with its operations;
(b) the operational, counterparty, market and settlement risks to which it is exposed;
(c) the amount, composition and legal position of its available financial resources; and
(d) its ability to access additional financial resources if required.
(5) An Authorised Market InstitutionG must monitor and manage the concentration of credit and liquidity exposures to commercial banks and clearing MembersG .
(6) The procedures in Schedule 3 to the Regulatory LawG apply to a decision of the DFSAG under (2)(b) to specify a capital amount after a LicenceG has been granted.
(7) If the DFSAG decides to exercise its power under (2)(b) to specify a capital amount after a LicenceG has been granted, the Authorised Market InstitutionG may refer the matter to the FMTG for review.
Derived from RM118/2013 [VER15/07-13]
[Amended] DFSA RM133/2014 (Made 21st August 2014). [VER16/06-14]