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5.1I.1

(1) Total risk requirement shall be calculated in the same manner as prescribed in the Notice on Risk Based Capital Adequacy Requirements for Holders of Capital Markets Services Licences.
(2) For the purposes of calculating total risk requirement under rule 5.1I.1(1):
(a) structured warrants must be treated according to their classification under the SFA;
(b) "margin deficiency" referred to in the Notice on Risk Based Capital Adequacy Requirements for Holders of Capital Markets Services Licences is the amount required for the Customer Asset Value to meet the Variation Margin and Maintenance Margin, and in the case where Customer Asset Value is not sufficient to meet Variation Margin, the margin deficiency is the amount of Maintenance Margin; and
(c)"negative equity" referred to in the Notice on Risk Based Capital Adequacy Requirements for Holders of Capital Markets Services Licences is the amount required for the Customer Asset Value to meet the Variation Margin.

Amended on 3 April 20083 April 2008, 1 July 20081 July 2008, 23 January 200923 January 2009 and 29 December 201429 December 2014.