Statement of Substance and Purpose – Proposed Amendment to Capital Requirement Rule

The TTSE is proposing to implement a risk based approach for determining the capital requirements for its member firms with the purpose of strengthening the management of risk. This approach will allow for member firms to be capitalized based on the riskiness of the assets on their balance sheet. This will allow for larger capital buffers in those firms who assume more risk compared to those who assume less risk and therefore provide greater protection for investors.

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