Whole Section

  • 2.02A Eligibility Criteria for Direct Clearing Members

    • 2.02A.1

      Unless otherwise prescribed by the Clearing House, to be eligible for Clearing Membership as a Direct Clearing Member, an applicant must satisfy the Clearing House that:—

      2.02A.1.1 it fulfills the criteria and requirements set out in Rule 2.02 (except for Rules 2.02.1.1.b and 2.02.1.4); and
      2.02A.1.2 it or its holding company has obtained a long term credit rating from any rating agency registered with an appropriate authority, that indicates, at least, a very strong overall creditworthiness supporting the fulfilment of its financial obligations.

      Added on 27 March 200627 March 2006 and amended on 10 August 200710 August 2007 and 26 April 201326 April 2013.

    • 2.02A.2

      Upon admission as a Direct Clearing Member, if there is any downgrade in the rating of the Direct Clearing Member or its holding company such that it falls below the minimum prescribed rating, the Clearing House may, at its absolute discretion, impose additional conditions as it deems fit, for permitting the Direct Clearing Member to continue to clear Contracts through the Clearing House.

      Added on 27 March 200627 March 2006 and amended on 10 August 200710 August 2007.