Voglio sapere a riguardo di…

jbell on DSKJLSW7X2PROD with NOTICES2

43372

Federal Register / Vol. 86, No. 149 / Friday, August 6, 2021 / Notices
Rules; PRA Internal Liquidity Adequacy Assessment Rules; PRA Liquidity Coverage RequirementUK Designated Investment Firms Rules; PRA
Notifications Rules 2.1, 2.4 through 2.6, 2.8, 2.9; and Part 9 of the Bank Recovery and Resolution No 2 Order 2014;
ii The Covered Entity applies substituted compliance for the requirements of Exchange Act rules 18a5a9, 18a6b1x, and 18a 8a1i, a1ii, b1, b2, and b4 pursuant to this Order; and iiiA The Covered Entity:
1 Maintains liquid assets as defined in paragraph c1iiiB that have an aggregate market value that exceeds the amount of the Covered Entitys total liabilities by at least $100 million before applying the deduction specified in paragraph c1iiiC and by at least $20 million after applying the deduction specified in paragraph c1iiiC;
2 Makes and preserves for three years a quarterly record that:
a Identifies and values the liquid assets maintained pursuant to paragraph c1iiiA1;
b Compares the amount of the aggregate value the liquid assets maintained pursuant to paragraph c1iiiA1 to the amount of the Covered Entitys total liabilities and shows the amount of the difference between the two amounts the excess liquid assets amount; and c Shows the amount of the deduction specified in paragraph c1iiiC and the amount that deduction reduces the excess liquid assets amount;
3 The Covered Entity notifies the Commission in writing within 24 hours in the manner specified on the Commissions website if the Covered Entity fails to meet the requirements of paragraph ciiiA1 and includes in the notice the contact information of an individual who can provide further information about the failure to meet the requirements; and 4 Includes its most recent statement of financial condition filed with its local supervisor whether audited or unaudited with its initial written notice to the Commission of its intent to rely on substituted compliance under condition a16 above.
B For the purposes of paragraph c1iiiA1, liquid assets are:
1 Cash and cash equivalents;
2 Collateralized agreements;
3 Customer and other trading related receivables;
4 Trading and financial assets; and 5 Initial margin posted by the Covered Entity to a counterparty or a third-party custodian, provided:
a The initial margin requirement is funded by a fully executed written loan
VerDate Sep<11>2014

20:04 Aug 05, 2021

Jkt 253001

agreement with an affiliate of the Covered Entity;
b The loan agreement provides that the lender waives re-payment of the loan until the initial margin is returned to the Covered Entity; and c The liability of the Covered Entity to the lender can be fully satisfied by delivering the collateral serving as initial margin to the lender.
C The deduction required by paragraph c1iiiA is the amount of the Covered Entitys risk-weighted assets calculated for the purposes of the capital requirements identified in paragraph c1i divided by 12.5.
2 Margin. The requirements of Exchange Act section 15Fe and Exchange Act rule 18a3, provided that:
i The Covered Entity is subject to and complies with the requirements of UK EMIR article 11; UK EMIR Margin RTS; UK CRR articles 103, 1053;
10510; 1112, 224, 285, 286, 2867, 290, 295, 2962b, 2971, 2973, and 2981; UK MiFID Org Reg article 231;
PRA General Organisational Requirements Rule 2.1; and PRA
Internal Capital Adequacy Assessment Rule 4.2;
ii The Covered Entity collects variation margin, as defined in the UK
EMIR Margin RTS, from a counterparty with respect to transactions in noncleared security-based swaps, unless the counterparty would qualify for an exception from the collateral collection requirements under paragraph c1iii or c2iii of Exchange Act 18a3;
iii The Covered Entity collects initial margin, as defined in the UK EMIR
Margin RTS, from a counterparty with respect to transactions in non-cleared security-based swaps, unless the counterparty would qualify for an exception from the collateral collection requirements under paragraph c1iii of Exchange Act rule 18a3; and iv The Covered Entity applies substituted compliance for the requirements of Exchange Act rule 18a 5a12 pursuant to this Order.
d Substituted Compliance in Connection With Internal Supervision and Compliance Requirements and Certain Exchange Act Section 15FJ
Requirements This Order extends to the following provisions related to internal supervision and compliance and Exchange Act section 15Fj requirements:
1 Internal supervision. The requirements of Exchange Act rule 15Fh3h and Exchange Act sections 15Fj4A and j5, provided that:
i The Covered Entity is subject to and complies with the requirements
PO 00000

Frm 00056

Fmt 4701

Sfmt 4703

identified in paragraph d3 of this Order;
ii The Covered Entity complies with paragraph d4 of this Order; and iii This paragraph d does not extend to the requirements of paragraph h2iiiI to rule 15Fh3 to the extent those requirements pertain to compliance with Exchange Act sections 15Fj2, j3, j4B, and j6, or to the general and supporting provisions of paragraph h to rule 15Fh3 in connection with those Exchange Act sections.
2 Chief compliance officers. The requirements of Exchange Act section 15Fk and Exchange Act rule 15Fk1, provided that:
i The Covered Entity is subject to and complies with the requirements identified in paragraph d3 of this Order;
ii All reports required pursuant to UK MiFID Org Reg article 222c must also:
A Be provided to the Commission at least annually and in the English language;
B Include a certification signed by the chief compliance officer or senior officer as defined in Exchange Act rule 15Fk1e2 of the Covered Entity that, to the best of the certifiers knowledge and reasonable belief and under penalty of law, the report is accurate and complete in all material respects;
C Address the Covered Entitys compliance with:
1 Applicable requirements under the Exchange Act; and 2 The other applicable conditions of this Order in connection with requirements for which the Covered Entity is relying on this Order;
D Be provided to the Commission no later than 15 days following the earlier of:
1 The submission of the report to the Covered Entitys management body; or 2 The time the report is required to be submitted to the management body;
and E Together cover the entire period that the Covered Entitys annual compliance report referenced in Exchange Act section 15Fk3 and Exchange Act rule 15Fk1c would be required to cover.
3 Applicable supervisory and compliance requirements. Paragraphs d1 and d2 are conditioned on the Covered Entity being subject to and complying with the following requirements:
i FCA CASS 6.2.1R, 7.11.1R, and 7.12.1R;
ii FCA COBS 11.7A.3R;
iii Either FCA IFPRU 2.2.7R2, 2.2.17R through 2.2.28R, 2.2.30R, and
E:FRFM06AUN2.SGM

06AUN2