Document ID: chunk:federal_register_of_legislation:F2024C00507:body:0:p22
Version: federal_register_of_legislation:F2024C00507
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or permit to subsist any loans from participants or members unless such loans are subordinated to the claims of all other creditors of the central counterparty; or

      (n) any other matter arises which has or is likely to have a significant impact on its risk control arrangements (see also CCP Standards 1.6, 16.10 and 19.3).

   21.2 A central counterparty should also provide to the Reserve Bank, on a timely basis:

      (a) audited annual accounts;

      (b) management accounts on a regular basis, and at least quarterly;

      (c) risk management reports, including detailed information on margining and stress testing, on a regular basis, and at least quarterly;

      (d) periodic activity, risk and operational data, as agreed with the Reserve Bank; and

      (e) any other information as specified by the Reserve Bank from time to time.

Glossary

Unless the contrary intention appears, the terms in the Financial Stability Standards for Central Counterparties (CCP Standards) have the meanings provided for in this Glossary. Wordings or terms used in this Glossary importing the singular shall include the plural and vice versa where the context requires.

Note: This Glossary is based largely on the glossary to the Principles, and the CPSS Glossary of Terms Used in Payments and Settlement Systems, added to and amended by the Reserve Bank as appropriate.[3]

Term                                   Definition
affiliate                              This term means 'associated entity' as defined in section 50AAA of the Corporations Act 2001.
backtesting                            A comparison of previously observed outcomes with expected outcomes derived from the use of margin models.
business continuity                    A state of uninterrupted business operations. This term also refers to all of the organisational, technical and staffing measures used to ensure the continuation of operations following a disruption to a service, including in the event of a wide-scale or major disruption.
central bank money                     A liability of a central bank, in this case in the form of deposits held at the central bank, which can be used for settlement purposes.
central counterparty                   An entity that interposes itself between counterparties to contracts traded in one or more financial markets, becoming the buyer to every seller and the seller to every buyer, and thereby ensuring the performance of open contracts.
clearing                               The process of transmitting, reconciling and, in some cases, confirming transactions prior to settlement, potentially including the netting of transactions and the establishment of final positions for settlement. For the clearing of futures and options, this term also refers to the daily balancing of profits and losses and the daily calculation of collateral requirements.
close out                              The process of offsetting an existing contract by entering into a new contract of an equal and opposite position.
collateral                             An asset or third-party commitment that is used by a collateral provider to