| SONAR ASX Rule S1A - Capital Liquidity |
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The need to provide a minimum capital standard that covers the inherent risks of a securities business is a well established regulatory principle. As such, Participants of the Australian Stock Exchange (ASX) and the Australian Clearing House (ACH) are required to comply with these capital requirements.
Rule S1A is designed to provide brokers with the ability to produce daily reports to the ASX on their Risk Based Capital Requirements.
As per the ASX rules around Risk Based Capital, Rule S1A separates the capital and risk calculation for Participants into liquid capital and a total risk requirement. The capital requirement for each of these areas of risk will depend on the nature and extent of activities undertaken by the Participant.
Rule S1A utilises the data that resides within a Participants back-office settlement system to produce a series of reports, distributed via email, that include:
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