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Recital 16

Recital 16

(16)The requirements in Prudential Standard CPS 226 on eligible collateral and on how that collateral is held and segregated should be considered equivalent to those set out in Article 4 of Delegated Regulation (EU) 2016/2251. Prudential Standard CPS 226 contains an equivalent list of eligible collateral, and an APRA covered entity is to have appropriate controls in place to ensure that the collateral collected does not exhibit significant wrong-way risk or significant concentration risk. Concentration should be assessed in terms of an individual issuer, issuer type and asset type. Margin rules for OTC derivative contracts not cleared by a CCP contained in Prudential Standard CPS 226 should therefore be considered equivalent to those provided for under Article 11(3) of Regulation (EU) No 648/2012.

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