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Article 3 - Level of capital requirements for a CSD

1.

A CSD shall hold capital, together with retained earnings and reserves, which shall be at all times more than or equal to the sum of:

(a)

the CSD’s capital requirements for operational, legal and custody risks, referred to in point (a) of 2014, calculated in accordance with Article 4;

(b)

the CSD’s capital requirements for investment risks, referred to in point (a) of 2014, calculated in accordance with Article 5;

(c)

the CSD’s capital requirements for business risks, referred to in point (a) of 2014, calculated in accordance with Article 6;

(d)

the CSD’s capital requirements for winding-down or restructuring its activities, referred to in point (b) of 2014, calculated in accordance with Article 7.

2.

A CSD shall have procedures in place to identify all sources of the risks referred to in paragraph 1.