| 1. |
VASPs authorised by VARA to provide Margin Trading services shall—
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a. |
ensure that the aggregate funds allocated for Margin Trading services by the VASP are included in the VASP’s calculation of its Operational Exposure; and |
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b. |
ensure that the amount of credit extended to a single client for Margin Trading does not exceed one tenth of the total funds directly or indirectly attributable to Margin Trading by the VASP in its Operational Exposure, in accordance with Rule III.D.1.a of this Broker-Dealer Services Rulebook above.
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| 2. |
VASPs may only accept the following types of collateral in a Margin Trading Account—
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a. |
the Virtual Asset financed on Margin in that account; |
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b. |
fiat currency; and |
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c. |
Fiat-Referenced Virtual Asset referencing USD [or AED as approved by VARA] and where such Fiat-Referenced Virtual Asset, in all events, is backed by cash or cash equivalent [as defined in internationally recognised accounting standards] reserves denominated in the fiat currency referenced of not less than the market value of the Fiat-Referenced Virtual Asset in public circulation, or not yet redeemed.
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| 3. |
Notwithstanding Rule III.D.2 of this Broker-Dealer Services Rulebook, VASPs may accept the following types of collateral in a Margin Trading Account in the following circumstances—
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a. |
other Virtual Assets where there is a continuing fall in the market value of the Virtual Asset financed on Margin; and |
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b. |
other Virtual Assets where trading in the Virtual Asset financed on Margin is suspended or discontinued for more than seven [7] Working Days or such other period prescribed by VARA.
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