CSD-3.9 CSD-3.9 Permissible Investments of Customers' Money and Assets by Licensed Clearing House
CSD-3.9.1
Subject to Paragraph CSD-3.9.2, a
licensed clearing house may invest any money or assets deposited, or paid in respect of, or in relation to, contracts of customers of a member and held by thelicensed clearing house in the course of its clearing orsettlement activities, including any money deposited in the trust account in anysecurity , instrument or other form of investment arrangement as the CBB may prescribe, which are low risk and which are not otherwise restricted by the CBB.Amended: April 2016CSD-3.9.2
A
licensbed clearing house may invest the money deposited with or paid to it in the following classes:(a)Securities of the Government;(b) Bank deposits;(c) Transferrable negotiable certificates of deposit; and(d) Any other investment approved by the CBB.CSD-3.9.3
The
licensed clearing house shall seek the prior written approval of the CBB before investing any such money or assets under Paragraph CSD-3.9.2.Amended: April 2016CSD-3.9.4
The
licensed clearing house seeking the approval of the CBB under Paragraph CSD-3.9.2 shall satisfy the CBB:(a) That the management of the investments made by thelicensed clearing house is consistent with the principles of preserving principal and maintaining sufficient liquidity to meet the obligations of customers of members of thelicensed clearing house ;(b) That prudential measures have been adopted to manage the risks in respect of thelicensed clearing house's investment activities; and(c) Of any other matter which the CBB considers necessary for the sound management of the investments.Amended: April 2016CSD-3.9.5
The CBB may grant the approval referred to in Paragraph CSD-3.9.3, subject to such conditions or restrictions as the CBB may deem fit.
Amended: April 2016