3I0-012 Exam Dumps : ACI Dealing Certificate

only after consultation with the local regulator

only if the switching transaction is done at the current market rate

only provided that such transactions are identified as switching transactions

only after approval by the broker’s senior management

Unilateral collateral obligations to sovereign counterparties provide liquidity to banks.

Under Basel III commercial banks are most likely to incur lower costs to service their sovereign clients.

While banks usually do not call for collateral from sovereign counterparties, they must provide collateral for the offsetting hedge transactions which are undertaken with commercial counterparties.

Uncollateralised exposures to sovereign counterparties will not require additional regulatory capital to be set aside against potential credit losses

capital adequacy regulations in Pillar 1

market risk and Tier 3 capital elements

internal management procedures subject to supervisory review in Pillar 2

market discipline, disclosure and transparency in Pillar 3