7.3	A payment system or SSS, including one employing a DNS mechanism, should maintain sufficient liquid resources in all relevant currencies to effect same-day settlement, and where appropriate intraday or multiday settlement, of payment obligations with a high degree of confidence under a wide range of potential stress scenarios that should include, but not be limited to, the default of the participant and its affiliates that would generate the largest aggregate payment obligation in extreme but plausible market conditions.
Not Applicable.
7.4	A CCP should maintain sufficient liquid resources in all relevant currencies to settle securities- related payments, make required variation margin payments, and meet other payment obligations on time with a high degree of confidence under a wide range of potential stress scenarios that should include, but not be limited to, the default of the participant and its affiliates that would generate the largest aggregate payment obligation to the CCP in extreme but plausible market conditions. In addition, a CCP that is involved in activities with a more- complex risk profile or that is systemically important in multiple jurisdictions should consider maintaining additional liquidity resources sufficient to cover a wider range of potential stress scenarios that should include, but not be limited to, the default of the two participants and their affiliates that would generate the largest aggregate payment obligation to the CCP in extreme but plausible market conditions.
APEX Clear monitors and manages its liquidity requirements and resources through its liquidity risk management framework. APEX Clear’s stress test scenario is targeted towards covering the simultaneous default of its largest loss group as well as its 2 financially weakest members. APEX Clear maintains its margin monies in cash and cash equivalents and also seek to increase bank credit lines as contingency funding sources. Hence, it is able to meet payment obligations on time with a high degree of confidence, including under a wide range of potential stress scenarios.
7.5	For the purpose of meeting its minimum liquid resource requirement, an FMI’s qualifying liquid resources in each currency include cash at the central bank of issue and at creditworthy commercial banks, committed lines of credit, committed foreign exchange swaps, and committed repos, as well as highly marketable collateral held in custody and investments that are readily available and convertible into cash with prearranged and highly reliable funding arrangements, even in extreme but plausible market conditions. If an FMI has access to routine credit at the central bank of issue, the FMI may count such access as part of the minimum requirement to the extent it has collateral that is eligible for pledging to (or for conducting other appropriate forms of transactions with) the relevant central bank. All such resources should be available when needed.
APEX Clear’s qualifying liquid resources can include margin monies, guaranty fund contributions as well as committed bank credit lines. Currently, APEX Clear maintains the margin monies and guaranty fund contributions in cash and cash equivalents. APEX Clear also monitors the daily excess margins levels to ensure that it has sufficient funds to meet unexpected liquidity requirements. Direct debit mandates between Clearing Members, Settlement Banks and APEX Clear are in place to ensure the smooth debiting of funds directly from Clearing Members accounts to meet the margin requirements.