National Environmental Management Act, 1998 (107 of 1998)
R 385
Financial Markets Act, 2012 (Act No. 19 of 2012)RegulationsFinancial Markets Act RegulationsChapter VI : Central Counterparties38. Collateral requirements38.3 Re-use of collateral collected as initial margin |
A licensed central counterparty—
| (a) | may only once re-hypothecate the collateral collected as initial margin with the consent of the client; |
| (b) | must have rules regarding the use of collateral, which rules must clearly specify when the central counterparty may re-use the collateral, segregation of the collateral and the process of returning the collateral; and |
| (c) | in general may not rely on the re-use of collateral as an instrument for increasing or maintaining its profitability however it may invest any cash collateral received from participants on their behalf. |
