7.04.5A

Past version: Effective up to 25 Apr 2013

If the Clearing House accepts an Eligible OTCF Transaction registered for clearing pursuant to Rule 7.02AA.2, the Clearing House shall, subject always to Rule 7.04.5C, be substituted as and shall assume the position of:

(a) the Clearing Member who:
(i) is the First Original OTCF Contract Counterparty; or
(ii) assumes the duties and obligations of the First Original OTCF Contract Counterparty
to the Clearing Member who:
(iii) is the Second Original OTCF Contract Counterparty; or
(iv) assumes the duties and obligations of the Second Original OTCF Contract Counterparty; and
(b) the Clearing Member who:
(i) is the Second Original OTCF Contract Counterparty; or
(ii) assumes the duties and obligations of the Second Original OTCF Contract Counterparty
to the Clearing Member who:
(iii) is the First Original OTCF Contract Counterparty; or
(iv) assumes the duties and obligations of the First Original OTCF Contract Counterparty,

thereby becoming the central counterparty, and thereupon the Clearing House shall have all the rights and be subject to all the liabilities with respect to such transaction of the Clearing Members who were the parties to such transaction. Such substitution shall be effective in law for all purposes.

Added on 3 November 20103 November 2010.