The acceptable Collaterals, according to the EU HAR are the Bank Guarantee and/or a cash deposit in a dedicated Business Account, provided that the JAO is entitled as beneficiary to the full collateral.
Collaterals that are provided in the form of a bank guarantee shall comply with the following specifications:
- bank guarantee shall be provided following the template available on JAO’s website
- the bank issuing the bank guarantee shall be permanently established, including via a branch in a EU member state, European Economic Area or Switzerland
- the bank issuing the bank guarantee, or the financial group it belongs to, shall have a long term credit rating of not less than BBB+ by Standard and Poor’s Corporation, BBB+ by Fitch or Baa1 by Moody’s Investors Service Inc.
- the bank issuing the bank guarantee shall not be an affiliate of the registered participant for which the bank guarantee is issued