GRCStandard

CPS 226

Prudential Standard CPS 226: Margining and Risk Mitigation for Non-centrally Cleared Derivatives

This is an Australian standard issued by APRA outlining the requirements for margining and risk mitigation of non-centrally cleared derivatives. It ensures financial institutions operate with adequate practices to manage counterparty risk.

Overview

CPS 226 establishes principles for financial institutions in Australia to manage risk exposure related to non-centrally cleared derivatives. The standard requires institutions to exchange variation margin and initial margin, maintain documented policies, and implement operational processes to assess and mitigate risks. Additionally, it aligns with international frameworks promulgated by global regulatory bodies. By ensuring consistent risk mitigation practices, CPS 226 aims to reduce systemic risks arising from derivative transactions.

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APS 222 is a prudential standard issued by the Australian Prudential Regulation Authority (APRA) aimed at ensuring that authorised deposit-taking institutions (ADIs) identify, monitor, and control risks related to their associations and dealings with related entities. It mandates policies and limits on exposures to mitigate contagion and step-in risks.

Australian Prudential Regulation Authority (APRA) • Australia • vJanuary 2015

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APS 220 — Prudential Standard APS 220 Credit Risk Management

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Australian Prudential Regulation Authority (APRA) • Australia • vSeptember 2020

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APS 210 — Prudential Standard APS 210 Liquidity

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Australian Prudential Regulation Authority (APRA) • Australia

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3PS 310 — Banking, Insurance and Life Insurance (Prudential Standard) Determination No. 4 of 2016 - Prudential Standard 3PS 310 Audit and Related Matters

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Australian Prudential Regulation Authority (APRA) • Australia

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