A margin lending facility issuer must meet the adjusted surplus liquid funds requirement calculated with the specific adjustments for margin loans (the counterparty risk weighting of margin loan receivables and the treatment of secured positions), unless it or another person holding security is an Australian ADI or prudentially regulated, in which case the base level applies; ASIC considers the requirement appropriate to the risk that the lender cannot meet its obligations to clients when markets fall. A foreign exchange dealer may choose the alternative treatment for certain foreign exchange contracts, consistent with the approach the Reserve Bank took before March 2002, provided the conditions in Appendix 6 are met, which relieves it of part of the adjusted surplus liquid funds calculation for those contracts while keeping the base level and the client money protections.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.