An FMI that takes collateral accepts mainly assets with low credit, liquidity and market risk. It values collateral prudently and sets haircuts that are tested regularly and calibrated to include stressed markets, stable enough to limit procyclical changes; avoids concentrated holdings that would be hard to liquidate quickly without price impact; mitigates risks of cross-border collateral and ensures timely use; and operates a well-designed, operationally flexible collateral management system.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.