CMA Decision No. 16/Chairman of 2021 · UAE Federal
Amending instrument that changes the Central Clearing Party (CCP) Regulation (CMA Decision No. 22/Chairman of 2016). The CMA has consolidated its changes into the current text of the amended regulation and keeps this instrument in its archive of amending regulations.
Chairman's Resolution No. 16/Chairman of 2021 tightened two parts of the Central Clearing Party (CCP) Regulation (Chairman's Resolution No. 22/Chairman of 2016): the risk committee and the collateral a CCP may take from its clearing members. It was approved by the Board of the Securities and Commodities Authority (now the CMA) on 22 February 2021, signed by the Minister of Economy as Chairman in Abu Dhabi on 1 June 2021 and, under Article 3, took effect on the date of issue, with publication in the Official Gazette to follow. The text is published as an Arabic scan.
Article 1 rewrites clause 7 of Article 10 of the 2016 regulation: the CCP must form a risk committee made up of board members and the CCP's executive management.
Article 2 replaces Article 15. The CCP collects margins and collateral from clearing members as securities, cash or a letter of guarantee. Securities must be highly liquid with low market, credit and concentration risk, are subject to haircuts set by the CCP to reflect market and credit risk, and may not be re-pledged by the CCP. Cash must be held with a licensed bank, with risk spread, or invested in high-quality money market instruments, avoiding wrong-way risk. A letter of guarantee must be issued by a bank or finance company licensed by the Central Bank, in favour of the CCP, unconditional, payable on demand and not cancellable without the CCP's consent.
The CMA has consolidated both changes into the current text of the CCP Regulation, whose notes record them against Article 10(7) and Article 15.
Central clearing parties licensed by the CMA, their boards and executive management, and clearing members that post margin and collateral with a CCP, together with banks and finance companies that issue guarantees in a CCP's favour.
Arabic original text in 2 passages. Open the full text or jump to a provision:
| Article 1 | Replaces clause 7 of Article 10 of the CCP Regulation: the CCP must form a risk committee of board members and its executive management. |
| Article 2 | Replaces Article 15: margins and collateral may be taken as securities, cash or a letter of guarantee; securities must be highly liquid, low-risk, subject to CCP haircuts and may not be re-pledged. |
| Article 2 | Cash collateral is held with a licensed bank or invested in high-quality money market instruments; letters of guarantee come from Central Bank-licensed banks or finance companies, unconditional and payable on demand. |
| Article 3 | Effective from the date of issue, 1 June 2021, and published in the Official Gazette. |
This resolution rarely touches our clients directly; it matters when a client's group includes a clearing member or a bank issuing guarantees to a UAE clearing house, and when we trace which collateral rules applied at a given date. Polaris is not licensed by the CMA and does not provide clearing services; we explain where an activity sits in the CMA framework, administer the group companies around it, coordinate with licensed advisers, and keep corporate, UBO and AML records in order.
| Amends | CMA Decision No. 22/Chairman of 2016 |
“Cites” and “Cited by” are built automatically from references in the full texts held in this library; they cover only instruments in the library.
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