(a) | by deleting sub-paragraph (37) of paragraph 3 and substituting the following sub-paragraph:“(37) In this paragraph, the values attributable to the assets deposited by a counterparty to satisfy maintenance margin requirements of a futures exchange, a designated clearing house, an overseas futures exchange, or a clearing facility appointed by an overseas futures exchange shall be determined in accordance with the relevant business rules of that futures exchange, designated clearing house, overseas futures exchange or clearing facility appointed by an overseas futures exchange (as the case may be).”; |
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(b) | by deleting the definition of “maintenance margin” in paragraph 3(38) and substituting the following definition:“ “maintenance margin” means the amount of maintenance margin prescribed by the futures exchange, designated clearing house, overseas futures exchange, or clearing facility appointed by an overseas futures exchange;”; |
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(c) | by deleting the words “a securities exchange” in paragraphs 3 (49)(a) and 5 (4)(l)(iii) and substituting in each case the words “an approved exchange”; |
(d) | by deleting sub-paragraph (b) of paragraph 3(49); |
(e) | by deleting sub-paragraph (b) of paragraph 4(7) and substituting the following sub-paragraph:“(b) | until otherwise directed by the Authority, calculate an appropriate position risk requirement for the position, which shall be either —(i) | 100% of the current market value of the position; or | (ii) | a percentage of the current market value of the non-standard instrument or a method of computation as the Authority may allow.”; |
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(f) | by deleting sub-paragraph (d) of paragraph 4(13) and substituting the following sub-paragraph:“(d) | such other equity derivatives as may be specified —(i) | by the Authority in its guideline; or | (ii) | by an approved exchange or a designated clearing house from time to time.”; |
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(g) | by deleting sub-paragraph (28) of paragraph 4 and substituting the following sub-paragraph:“(28) The holder may use the equity margin method to calculate an equity derivative position risk requirement for a position in an equity derivative traded on any approved exchange, overseas securities exchange or overseas futures exchange and that is subject to a positive margin requirement prescribed by the approved exchange, designated clearing house, overseas securities exchange, clearing facility appointed by the overseas securities exchange, overseas futures exchange, or clearing facility appointed by the overseas futures exchange.”; |
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(h) | by deleting sub-paragraph (a) of paragraph 4(29) and substituting the following sub-paragraph:“(a) | in the case of an equity derivative traded on an approved exchange, or a recognised group A exchange, as 2 times the margin prescribed by the approved exchange, designated clearing house, recognised group A exchange, or a clearing facility appointed by the recognised group A exchange; and”; |
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(i) | by deleting the words “or the securities exchange, futures exchange or clearing house (as the case may be)” in paragraph 4(52); |
(j) | by deleting sub-paragraph (58) of paragraph 4 and substituting the following sub-paragraph:“(58) The holder may use the debt margin method to calculate a debt derivative position risk requirement for a position in a debt derivative traded on any approved exchange, designated clearing house, recognised group A exchange, recognised group B exchange, clearing facility appointed by a recognised group A exchange, or clearing facility appointed by a recognised group B exchange and that is subject to a positive margin requirement prescribed by the approved exchange, designated clearing house, recognised group A exchange, recognised group B exchange, clearing facility appointed by the recognised group A exchange, or clearing facility appointed by the recognised group B exchange (as the case may be).”; |
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(k) | by deleting sub-paragraph (a) of paragraph 4(59) and substituting the following sub-paragraph:“(a) | in the case of a debt derivative traded on an approved exchange or a recognised group A exchange, as 2 times the margin prescribed by the approved exchange, a designated clearing house, the recognised group A exchange, or a clearing facility appointed by the recognised group A exchange (as the case may be); and”; |
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(l) | by deleting sub-paragraph (iv) of paragraph 5(4); and |
(m) | by deleting sub-paragraph (viii) of paragraph 5(4) and substituting the following sub-paragraph:“(viii) | an entity which is a member of any entity referred to in sub-paragraphs (iii) to (vii).”. |
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