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2.5.6 Notification Requirements of General Trading Members

The following requirements apply in relation to material changes to Financial Resources or Adjusted Net Head Office Funds:

(a) a General Trading Member is required to immediately notify the Exchange in the event of any material changes to its Financial Resources or Adjusted Net Head Office Funds, as the case may be, including:
(i) an initial notification if its Financial Resources or Adjusted Net Head Office Funds, as the case may be, fall below 150% of its Total Risk Requirement;
(ii) a warning notification if its Financial Resources or Adjusted Net Head Office Funds, as the case may be, fall below 120% of its Total Risk Requirement;
(iii) if its Aggregate Indebtedness exceeds 600% of its Aggregate Resources; or
(iv) if its Financial Resources or Adjusted Net Head Office Funds, as the case may be, is reduced by more than 20% from the previously submitted monthly financial statement;
(b) if the Exchange is notified by a General Trading Member under this Rule 2.5.6 or otherwise becomes aware that a General Trading Member's Financial Resources or Adjusted Net Head Office Funds, as the case may be, has fallen or will fall below 120% of its Total Risk Requirement or such higher percentage as the Exchange may have imposed under Rule 2.5.4, the Exchange may direct that Member to comply with any or all of the requirements described under Regulation 7(3) of the Financial and Margin Regulations;
(c) if the Exchange is notified by a General Trading Member under this Rule 2.5.6 or otherwise becomes aware that a General Trading Member's Financial Resources or Adjusted Net Head Office Funds, as the case may be, has fallen or will fall below 150% of its Total Risk Requirement or such higher percentage as the Exchange may have imposed under Rule 2.5.4, the Exchange shall be entitled to require that Member to:
(i) submit its statements of assets and liabilities, Financial Resources, Total Risk Requirement, Aggregate Indebtedness, and such other statements as required by the Exchange at such interval and for such time frame as determined by the Exchange; and
(ii) operate its business in such manner and on such conditions as the Exchange may impose;
and
(d) if the Exchange is notified by a General Trading Member under this Rule 2.5.6 or otherwise becomes aware that a General Trading Member's Aggregate Indebtedness exceeds or will exceed 600% of its Aggregate Resources, or such lower percentage as the Exchange may have imposed under Rule 2.5.4, the Exchange may direct that Member to comply with any or all of the requirements described under Regulation 17(2) of the Financial and Margin Regulations.

Amended on 25 August 200925 August 2009 and 22 April 201922 April 2019.