relevant collateral

in relation to a transaction:

1. (a) cash;
2. (b) letters of credit and guarantees to the extent of their face value, issued by an approved bank which is neither a counterparty nor an associate of a counterparty;
3. (c) gold and silver bullion and coinage;
4. (d) marketable investments;
5. (e) the performance guarantees issued in support of the securities lending and borrowing programmes of Euroclear and Cedel, in respect only of exposure arising from participation in such programmes;

subject in each case to:

1. 1. (i) the firm having an unconditional right to apply or realise the relevant collateral for the purpose of repaying a counterparty's obligations;
   2. (ii) marketable investments:
      1. (A) being marked to market daily using the valuation principles in IPRU(INV) 3.41(9)R;
      2. (B) not being issued by a counterparty nor by an associate of a counterparty.5