• MIR 4.4 MIR 4.4 Admission of investments to Clearing — investment criteria

    • MIR 4.4.1

      A Recognised Clearing House must have clear and objective criteria ("investment criteria") included in its Business Rules according to which Investments can be cleared on its facilities. The investment criteria must include the requirements in Rule 4.4.2(a) and (b) below as relevant.

    • MIR 4.4.2

      A Recognised Clearing House must ensure that only investments which meet either (a) or (b) are cleared, on the facilities of a Recognised Clearing House:

      (a) in the case of securities, such securities are either:
      (i) admitted to an Official List of Securities; or
      (ii) admitted to trading on a Recognised Investment Exchange, Non-Abu Dhabi Global Market Recognised Investment Exchange, or a market in a jurisdiction acceptable to the Regulator; and
      (b) in the case of Derivative contracts, are traded on a Recognised Investment Exchange, Non-Abu Dhabi Global Market Recognised Investment Exchange, or a market in a jurisdiction acceptable to the Regulator or which it considers can be cleared while managing risk arising from Clearing the Derivative contract, having regard to:
      (i) the degree of standardisation of the contractual terms and operational processes of the Derivative contract;
      (ii) the volume and liquidity of the Derivative contract; and
      (iii) the availability of fair, reliable and generally accepted pricing information in the Derivative contract.