MIR 4.10.4

If a Recognised Clearing House plans to use assets held as collateral to secure liquidity facilities in the event of a participant default, the Recognised Clearing House must:

(a) consider, in determining acceptable collateral, what will be acceptable as security to lenders offering liquidity facilities.
(b) measure and monitor the correlation between a counterpart's creditworthiness and the collateral posted; and
(c) take measures to mitigate risks, that the collateral would likely lose value in the event that the participant providing the collateral defaults.