Financial Markets Act, 2012 (Act No. 19 of 2012)

Regulations

Purchase

A licensed central counterparty—

(a)	may only once re-hypothecate the collateral collected as initial margin with the consent of the client;

(b)	must have rules regarding the use of collateral, which rules must clearly specify when the central counterparty may re-use the collateral, segregation of the collateral and the process of returning the collateral; and

(c)	in general may not rely on the re-use of collateral as an instrument for increasing or maintaining its profitability however it may invest any cash collateral received from participants on their behalf.