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  • Limit Setting

    • RM-3.1.13

      Investment firm licensees must set limits in accordance with the nature, scale and complexity of their activities. The structure of limits should reflect the need for investment firm licensees to have systems and controls in place to guard against a spectrum of possible risks, from those arising in day-to-day liquidity risk management to those arising in stressed conditions.

      Adopted: July 2007

    • RM-3.1.14

      The CBB would normally expect a licensee to consider setting limits on:

      (a) Liability concentrations in relation to:
      (i) Individual, or related groups of, liability providers;
      (ii) Instrument types including those arising from short selling;
      (iii) Maturities, including the amount of debt maturing in a particular period; and
      (iv) Wholesale funding liabilities;
      (b) Where appropriate, net leverage and gross leverage; and
      (c) Daily settlement limits.
      Adopted: July 2007