2.28A.1

Past version: Effective from 11 Jan 2011 to 14 Mar 2013

In order to clear the trades of a Trading Member, a Clearing Member shall:—

2.28A.1.1 inform the Clearing House of such clearing arrangement with the Trading Member, and if the Clearing House requests, such details of the Trading Member as the Clearing House may from time to time specify;
2.28A.1.2 pay such administrative fee as the Clearing House may from time to time levy for the processing of such applications;
2.28A.1.3 satisfy the Clearing House that it has in place adequate internal control measures and risk management systems to monitor the Trading Member's trades and manage its risk exposure to such trades;
2.28A.1.4 enter into a written agreement with the Trading Member setting out the terms and conditions governing their relationship, which shall include without limitation, risk management provisions such as the right to impose trading limits on the Trading Member; and
2.28A.1.5 undertake to inform the Clearing House if it has knowledge or has reasons to believe that a Trading Member whom it has a clearing arrangement with has defaulted or may default in any of its obligations under the trades transacted by the Trading Member.

Added on 11 January 201111 January 2011.