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  • Criteria for Granting License of a Clearing House

    • CSD-1.2.14

      The CBB may license a person as a clearing house if:

      (a) The CBB is satisfied that the establishment of a clearing house to be operated by a person will;
      (i) Contribute towards developing the financial sector and enhance confidence therein; and
      (ii) Protect the interests of investors;
      (b) The CBB is satisfied that the person, having applied to be a licensed clearing house under this Module, is able/will be able to comply with the obligations or requirements imposed on the clearing house; and
      (c) If the CBB shall be satisfied that the rules of the applicant make satisfactory provision for:
      (i) The size and structure, or proposed size and structure, of the clearing facility;
      (ii) The nature of the services provided, or to be provided, by the clearing facility;
      (iii) The nature of the transactions cleared, or to be cleared, by the clearing facility;
      (iv) The clearing and settlement of transactions and for the management of trade and settlement risk;
      (v) The market where the transactions cleared through the clearing facility are traded or are to be traded;
      (vi) The nature of the investors or members, or proposed investors or members, who may use or have an interest in the clearing facility;
      (vii) Whether the person operating the clearing facility is otherwise regulated by the CBB Law or any other law;
      (viii) Whether the clearing facility has the ability to perform its function as a central counterparty;
      (ix) Whether the clearing facility takes on counterparty risks, through novation or otherwise, in the clearing or settlement of transactions;
      (x) The parties who may be affected in the event that the clearing facility runs into difficulties;
      (xi) The interests of the public;
      (xii) The ability to meet international standards and related protocols including IOSCO;
      (xiii) The ability to meet the International Securities Identification Number (ISIN) Standards and other international standards and protocols; and
      (xix) Any other circumstances that the CBB may deem relevant.

    • CSD-1.2.15

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      Added: April 2013