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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Rulebook Modules
Prudential — Investment, Insurance Intermediation and Banking Module (PIB) [VER33/02-19]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases
Financial Markets Tribunal

Whole SectionText only Print Print Manager Link

(1 version)
Dec 9 2012 onwards

PIB A4.4.1

Whole Section PDF

The definitive version of DFSA handbook text is the PDF version as that is the text of the instrument as made and published by the DFSA.

To view past versions of this module in PDF format, please visit the Archive.

A qualifying SFT must comply with the following requirements:

(a) both the ExposureG and the CollateralG are cash, or a SecurityG issued by a central government or Central BankG qualifying for a 0% risk weight under the RulesG in PIB section 4.12;
(b) both the ExposureG and the CollateralG are denominated in the same currency;
(c) either the transaction is overnight or both the ExposureG and the CollateralG are marked-to-market daily and are subject to daily remargining;
(d) following a Counterparty'sG failure to remargin, the time that is required between the last mark-to-market before the failure to remargin and the liquidation of the CollateralG is considered to be no more than four business days;
(e) the transaction is settled across a recognised settlement system for that type of transaction;
(f) the documentation covering the agreement is standard market documentation for repos, reverse repos, SecuritiesG , lending transactions or SecuritiesG borrowing transactions in the SecuritiesG concerned;
(g) the transaction is governed by documentation specifying that if the CounterpartyG fails to satisfy an obligation to deliver cash or SecuritiesG or to deliver margin, or otherwise defaults, then the transaction may be terminated immediately; and
(h) upon any event of default, regardless of whether the CounterpartyG is insolvent or bankrupt, the Authorised FirmG has the unfettered, legally enforceable right to immediately seize and liquidate the CollateralG for the benefit of the Authorised FirmG .
Derived from RM111/2012 (Made 15th October 2012). [VER20/12-12]