The following amendments are being made to the risk based capital requirements set out in Schedule 1 of the ASX Clear Operating Rules:
The timeframe specified in the definition of ‘Liquid” is being changed from 30 days to 31 days;
Removing the ability of a Clearing Participant to use Approved Subordinated Debt towards its core capital requirements.
A marked-up version of the ASX Clear Operating Rules showing the amendments can be found here.
The Capital Liquidity Handbook will be updated shortly to reflect these rule amendments.
ASX Clear Participants should familiarise themselves with these rule amendments and, in relation to the amended definition of ‘Liquid’, should determine whether assets they hold that are not liquid under the existing definition (and hence have had to be treated as excluded assets) may now be able to satisfy the new definition of liquid (and hence will no longer need to be treated as excluded assets).
These changes become effective from 13 November 2017.
Garry O’Connor, General Manager, Clearing Risk Quantification & Development