Examples of Second Consultation in a sentence
Other risks that the Second Consultation recommends that banks should consider in their risk management processes include cryptoasset technology risk, such as the stability and design of the DLT or similar technology network, the accessibility of cryptoassets to their holders (e.g., through cryptographic keys), the trustworthiness node operators and operator diversity, and valuation challenges arising from their volatility and variable pricing.
The Associations also believe that the types of risks identified by the Second Consultation are addressed by the existing operational risk framework and by banks’ risk management processes, although of course those processes must address the specific types of cryptoassets for which a bank offers products or services.
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CVA”) Risk The Second Consultation states that Group 2a cryptoassets are subject to the basic approach for CVA risk (“BA-CVA”) as set forth in MAR50.1 through MAR50.26, and that the use of the standardised approach for CVA risk (“SA-CVA”) is not permitted for derivatives and SFTs that reference Group 2a cryptoassets.
However, the Associations believe that a change to 10-day liquidity horizon is now justified because the Second Consultation has introduced strict criteria relating to trading volumes and the qualifications for Group 2a cryptoassets that were not part of the First Consultation.
Anne Teller, a co-lead of the Second Consultation Workshop of Biodiversity-related Conventions on the Post-2020 Global Biodiversity Framework (Bern II), reported on the outcome of the workshop (CBD/SBI/3/INF/29), also of relevance under agenda items 7, 8, 9 and 11 of the current meeting.
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For example, many of the types of cryptoasset technology risks identified by the Second Consultation are variants of existing risks relating to vendor management and use of or reliance on a technology platform or communication system.
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CCR”) The Associations generally support the approach taken by the Basel Committee in the Second Consultation with respect to how minimum risk-based capital requirements for counterparty credit risk are to be applied to derivatives referencing cryptoassets, including the availability of the IMM for Group 1a cryptoassets.