Media ININ Economy We Trust
16-04-2019 Media in\ Abu Dhabi
The Board of Directors of the Securities and Commodities Authority (SCA) decided to reduce the closing period of the clearing companies operating in commodity markets for all its financial centers and its members to one day instead of two days as in the past.
According to the Board of Directors’ decision – which was published on the SCA website – Article X / paragraph 20 of the 2015 resolution on regulation of clearing in the commodities market was amended.
The amended decision – which is part of the precautionary requirements that a clearing company must comply with in order to maintain safety from any risks to its operations with its members or customers – includes a number of conditions that include monitoring the exposure of the company to risks arising from its members at all times and at the same time And a margin threshold agreed upon with the Commission, sufficient to cover 99% confidence levels and to close the Company to all its financial centers and its members within one day and to identify the greatest risk it has experienced over the past three years.
The amended decision is due to be implemented from the day following its publication in the Official Gazette, according to the Securities and Commodities Authority (SCA)
