Guidance

1. In order to be applicable under (c) the guarantees must meet the requirements of Section 4.13.9 in relation to CRM.
2. An Authorised Person can only treat Exposures as collateralised provided the conditions of Rules 4.13.5 to 4.13.8 (relating to CRM) are met. Item (d) also includes cash received under a CLN issued by the Authorised Person and loans and Deposits of a Counterparty to or with the Authorised Person which are subject to an on balance sheet Netting agreement recognised under Section 4.13 (CRM).
3. The Regulator may consider a waiver for other sovereign Exposures where there is a local regulatory requirement to hold assets with a national regulatory authority. Authorised Persons will be required to apply for a waiver of the Large Exposure requirements in this regard and will be considered by the Regulator on a case by case basis.