Ordinance on Financial Market Infrastructures and Market Conduct in Securities and Derivatives Trading

(Art. 52 FMIA)

¹The fol­low­ing are deemed to con­sti­tute li­quid­ity in a cur­rency as set out in Art­icle 52 para­graph 1 FMIA:

a.

cash bal­ances in this cur­rency with a cent­ral bank or a cred­it­worthy fin­an­cial in­sti­tu­tion;

b.

cash bal­ances in oth­er cur­ren­cies that can be con­ver­ted in­to this cur­rency in a timely man­ner through for­eign ex­change trans­ac­tions;

c.

con­trac­tu­ally com­mit­ted and ap­proved un­se­cured lines of cred­it in this cur­rency with a cred­it­worthy fin­an­cial in­sti­tu­tion that can be used without any fur­ther cred­it de­cision;

d.

col­lat­er­al in ac­cord­ance with Art­icle 49 FMIA and as­sets that can be con­ver­ted in­to cash in this cur­rency in a timely man­ner through sales;

e.

col­lat­er­al in ac­cord­ance with Art­icle 49 FMIA and as­sets that can be con­ver­ted in­to cash in this cur­rency in a timely man­ner by means of con­trac­tu­ally com­mit­ted and se­cured lines of cred­it or con­trac­tu­ally com­mit­ted repo lines with cent­ral banks or cred­it­worthy fin­an­cial in­sti­tu­tions.

²The cent­ral coun­ter­party shall reg­u­larly re­view com­pli­ance with the re­quire­ments set out in Art­icle 52 para­graph 1 FMIA un­der vari­ous stress scen­ari­os. In do­ing so, it shall ap­ply col­lat­er­al dis­counts (hair­cuts) to the li­quid­ity that would be ap­pro­pri­ate even un­der ex­treme but plaus­ible mar­ket con­di­tions. It shall di­ver­si­fy its sources of li­quid­ity.

³The in­vest­ment strategy of the cent­ral coun­ter­party must be in har­mony with its risk man­age­ment strategy. It must avoid con­cen­tra­tion risks.