CSD-1.2.14
The CBB may license a
(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.