Document ID: chunk:federal_register_of_legislation:F2024C01107:body:0:p35
Version: federal_register_of_legislation:F2024C01107
Segment Type: other
Provision Reference: 
Character Range: 93018–95852

fits within this Schedule 1A,

is the full market value of the transaction unless ASIC approves otherwise.

S1A.2.9A Margin lending facilities

Where a Market Participant offers margin lending facilities to clients:
(a)        the risk requirement for the exposure with respect to margin calls is:
(i)         equal to 100% of the margin call that the Market Participant makes on a client, where that margin call has either not been paid by the client, or sufficient of the underlying securities have not been sold by the Market Participant to cover the margin call; and
(ii)       applies from the time the margin payment was due; and
(iii)     ceases from the earlier of:
(A)       the time the margin call has been paid in full; or
(B)       the time sufficient of the underlying securities have been sold by the Market Participant to cover the margin call; or
(C)       the time the debt in respect of the margin payment has been written off; and
(b)       where the client's actual gearing level exceeds the maximum permitted gearing level by more than 5%, the full amount needed to bring the loan balance back to the maximum permitted gearing level must be taken as the risk requirement for the exposure immediately, regardless of whether the Market Participant has made a margin call on the client.

S1A.2.9B Hybrid ETFs

Where a Market Participant holds a principal position in a Hybrid ETF that contains a material percentage of assets other than physical Equity securities, physical Debt Instruments or property, the Market Participant must treat the position as a non-standard exposure and the risk requirement must be the full market value of the Hybrid ETF, unless ASIC approves otherwise.

S1A.2.9C Other Managed Funds

Where a Market Participant has a principal position in an Other Managed Fund that contains a material percentage of assets other than physical Equity securities, physical Debt Instruments or property, the Market Participant must treat the principal position as a non-standard exposure and the risk requirement must be the full market value of the Other Managed Fund, unless ASIC approves otherwise.

S1A.2.9D Credit Derivatives
     (1) Where a Market Participant purchases a credit derivative (including but not limited to credit default swaps and first to default baskets), the Market Participant must treat the position as a non-standard exposure and the risk requirement must be equal to 8% of the product of the notional amount and the counterparty risk weighting applicable for that Counterparty specified in Table A5.2.1 in Annexure 5 to Schedule 1A.

(2) Where a Market Participant issues a credit derivative (including but not limited to credit default swaps and first to default baskets), the Market Participant must treat the position as a non-standard exposure and the risk requirement