Ordinance
on Financial Market Infrastructures and Market Conduct in Securities and Derivatives Trading
(Financial Market Infrastructure Ordinance, FinMIO)

(Art. 110 Fin­MIA)

¹ The value of the col­lat­er­al should be marked down by means of dis­counts on the mar­ket value in ac­cord­ance with An­nex 4.

² An ad­di­tion­al dis­count of 8% must be ap­plied in cases where:

a.

the cur­rency of the ini­tial mar­gin paid is dif­fer­ent from the cur­rency agreed for the ter­min­a­tion pay­ment;

b.

the cur­rency of non-cash vari­ation mar­gins provided is dif­fer­ent from the cur­ren­cies agreed in the de­riv­at­ives con­tract, the net­ting frame­work agree­ment or the cred­it sup­port an­nex for vari­ation mar­gins.⁴⁴

³ Coun­ter­parties may as­cer­tain the dis­counts that ap­ply us­ing their own es­tim­ates of mar­ket price and ex­change rate volat­il­ity if they meet the qual­it­at­ive and quant­it­at­ive min­im­um stand­ards in ac­cord­ance with An­nex 5.

⁴ They shall take meas­ures to:

a.

ex­clude risk con­cen­tra­tions with re­spect to cer­tain types of col­lat­er­al;

b.

rule out the pos­sib­il­ity that the col­lat­er­al ac­cep­ted was is­sued by the col­lat­er­al pro­vider or a com­pany as­so­ci­ated with the col­lat­er­al pro­vider;

c.

avoid key cor­rel­a­tion risks with re­spect to the col­lat­er­al re­ceived.