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RM-3.1.7

For the purposes of RM-3.1.6, the licensee should take into account:

(a) Possible changes in the market's perception of the licensee and the effects that this might have on the licensee's access to the markets, including:
(i) Where the licensee funds its holdings of assets in one currency with liabilities in another, access to foreign exchange markets, particularly in less frequently traded currencies;
(ii) Access to secured funding, including by way of repo transactions; and
(iii) The extent to which the licensee may rely on committed facilities made available to it;
(b) (If applicable) the possible effect of each scenario analysed on currencies whose exchange rates are currently pegged or fixed; and
(c) That:
(i) General market turbulence may trigger a substantial increase in the extent to which persons exercise rights against the licensee under off balance sheet instruments to which the licensee is party;
(ii) Access to OTC derivative and foreign exchange markets are sensitive to credit-ratings;
(iii) The scenario may involve the triggering of early amortisation in asset securitisation transactions with which the licensee has a connection; and
(iv) Its ability to securitise assets may be reduced at certain times.
Adopted: July 2007