1.  The Manager should have a framework for managing its cash balances and processing any margin or collateral calls from its prime brokers, financing and OTC derivative counterparties. In developing this framework, Managers should carefully consider industry practices and developments in this area.

1.  No applicable guidance.

2.  The Manager should:

1. understand and monitor its compliance with credit agreements;
2. understand and monitor the amount of collateral required to support positions;
3. verify marks used by the fund’s counterparties to value the fund’s positions for collateral purposes; and
4. verify and meet margin calls in a timely manner.

2.  No applicable guidance.