7A.01A.2A Apportionment of Clearing Fund Contributions across Contract Classes and across OTCF Auctions

Past version: Effective from 30 Jun 2014 to 11 Nov 2018

a. Where an event of default is deemed to have occurred in more than one Contract Class, the Clearing House First Loss Contribution and Clearing House Intermediate Contribution will be apportioned to each Contract Class in such proportion as the Clearing House will determine. The funds so apportioned will be used in the manner set out in Rule 7A.01A.2 (Clearing Fund Loss Allocation Mechanism) and Rule 7A.01B (Clearing Fund Loss Allocation Mechanism for Default in OTCF Contracts).
b. Where an event of default is deemed to have occurred, the Security Deposit and Further Assessment Amount of each Clearing Member will be apportioned. The Security Deposit and Further Assessment Amount deposited by a Clearing Member in respect of OTCF Contracts pursuant to Rules 7A.06.2 and 7A.06.3 will be apportioned to OTCF Contracts. The rest of the Security Deposit and Further Assessment Amount deposited by the Clearing Member will be apportioned to the other Contract Classes (not including the OTCF Contract Class) in such proportion as the Clearing House will determine. The funds so apportioned will be used in the manner set out in Rule 7A.01A.2 (Clearing Fund Loss Allocation Mechanism) and Rule 7A.01B (Clearing Fund Loss Allocation Mechanism for Default in OTCF Contracts).
c. Where an event of default is deemed to have occurred in OTCF Contracts and there is more than one auction under Rule 7A.02.1.5.b, the part of the Clearing House First Loss Contribution, Clearing House Intermediate Contribution and each Clearing Member's Security Deposit and Further Assessment Amount that is apportioned to OTCF Contracts will be further apportioned to each auction. The apportionment will be in such proportion as the Clearing House will determine. The funds so apportioned will be used in the manner set out in Rule 7A.01A.2 (Clearing Fund Loss Allocation Mechanism) and Rule 7A.01B (Clearing Fund Loss Allocation Mechanism for Default in OTCF Contracts).

Added on 30 June 201430 June 2014.