Summary of CySEC's Circular C414
Memo #55-2020
CySEC Circular No: C414
Date: 06/11/2020
Subject: Recommendation 2020/6 of the European Systemic Risk Board (ESRB) on liquidity risks arising from margin calls (the ‘Recommendation ESRB/2020/06’
Purpose: To inform Regulated Entities that the ESRB issued on 25 May 2020 the Recommendation 2020/06 on liquidity risks arising from margin calls.
In Summary:
CySEC has issued the Circular C414 on 06/11/2020 in order to inform the Cyprus Investment Firms (‘CIFs’), Credit Institutions, Alternative Investment Funds and their managers (‘AIFs’/ ‘AIFMs’), UCITS and their Management Companies (‘UCITS’/’UCITS MC’) and Non-Financial Counterparties (‘NFCs’), that the European Systemic Risk Board (ESRB) issued on the 25th of May, 2020, the Recommendation 2020/06 on liquidity risks arising from margin calls.
This Circular C414 includes more specific about what the Recommendations A, B, C and D are aimed.
CySEC informs that adopts Recommendation ESRB/2020/6 by incorporating its recommendations into its supervisory practices.
CySEC urges the Regulated Entities to take the necessary action in order to ensure their compliance with the requirements of the Recommendations.
The Recommendation 2020/06 cam be found on the follwoing link: https://www.esrb.europa.eu/pub/pdf/recommendations/esrb.recommendation200608_on_liquidity_risks_arising_from_margin_calls~41c70f16b2.en.pdf
Read the CySEC Circular C414
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