Section 191.49.5. Trading requirements.


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  • Each derivative instrument qualifying for legal reserve purposes under Iowa Code section 511.8(22) shall be:

            1.            Traded on a qualified exchange;

            2.            Entered into with, or guaranteed by, a business entity with an investment grade rating by the NAIC Securities and Valuation Office or by a majority of nationally recognized statistical rating organizations (NRSRO), on the NAIC/NRSRO list, that rate the business entity;

            3.            Issued or written by, or entered into with, the issuer of the underlying interest on which the derivative instrument is based; or

            4.            Entered into with a qualified foreign exchange.