These guidelines apply to capital markets services (CMS) licensees dealing in securities and trading in futures contracts, and which are members of an approved exchange or designated clearing house. It is in respect of capital computations before 3 April 2015 and financial returns before 1 July 2015.

It specifies how counterparty risk requirement should be computed for specified structured warrants in the following scenarios:

• Contracts unsettled at the end of or after the due date.
• Open contracts traded on an approved exchange other than a securities exchange or recognised group A exchange.
• Contract which is offset by contra contract, forced-sale or buying-in transaction.