341. Competent authorities should assess the ability of investment firms that are market makers to …

Competent authorities should assess the ability of investment firms that are market makers to monetise its liquid assets in a timely manner in order to meet its liquidity needs during a stress period. Competent authorities should take into account all of the following criteria:

• a. whether the investment firm tests its market access by selling or repoing on a periodic basis;
• b. whether there are high concentrations that may represent a risk of wrongly anticipated liquid resources;
• c. whether the liquidity resources are readily available and under the control of the relevant staff;
• d. whether the denomination of the liquid assets is consistent with the distribution of liquidity needs by currency;
• e. where the investment firm has borrowed liquid assets, whether it would no longer have them available to meet its outflows under severe but plausible conditions considering the net effect of the transaction; and
• f. the reliability of the committed liquidity facilities if they are used by the investment firm.

Evaluation of funding

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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