(1) An Authorised Person which has taken eligible financial Collateral for any transaction other than an equity Exposure, an SE Exposure, an OTC Derivative transaction, long settlement transaction or SFT may recognise the effect of such Collateral in accordance with Rules 4.9.6 and 4.9.7.
(2) An Authorised Person must use either the:
(a) Financial Collateral Simplified Approach (FCSA) which adopts the treatment under Rule 4.13.5 in relation to the composition of financial Collateral; or
(b) Financial Collateral Comprehensive Approach (FCCA) which adopts the treatment under Rule 4.13.6;
to recognise the effect of eligible financial Collateral.
(3) An Authorised Person must apply the chosen approach consistently to its entire Non-Trading Book and must not use a combination of both approaches.