(1) An Authorised Person may recognise the effects of CRM of a Credit Derivative only if it is provided by any of the following entities:
(a) central government or Central Bank;
(c) International Organisations referred to in Rule 4.12.9;
(e) banks and Securities firms which qualify for inclusion in bank asset class; or
(f) any other entity that has a Credit Quality Grade "3" or better.
(2) An Authorised Person may recognise the effects of CRM of only the following types of Credit Derivatives:
(a) credit default swaps;
(b) Total Return Swaps;
(c) CLNs which are cash funded; and
(d) instruments that are composed of, or are similar in economic substance, to one or more of the Credit Derivatives in (a) to (c).