CDP shall notify a Clearing Member in writing whenever its contributions to the Clearing Fund (or any part thereof) are applied in accordance with Rule 7.9.

Amended on 26 May 2023.

A Defaulting Clearing Member shall reimburse the Clearing Fund for any amount (except the amount it contributed to the Clearing Fund) which was applied out of the Clearing Fund as a result of or in connection with its default. Such reimbursement shall be made by such time as determined by CDP.

Amended on 26 May 2023.

If any amount is paid out of a Clearing Member's Collateralised Contributions or Contingent Contributions, the Clearing Member shall, upon demand by CDP, top-up the deficiency in its contributions arising from the said payment within such time as determined by CDP. CDP shall notify each Clearing Member in writing of the amount to be topped up and the time within which such top-up is required to be made under this Rule.

Amended on 1 July 20081 July 2008, 3 May 20113 May 2011, 26 May 2023 and 31 October 2024.

Notwithstanding any top-up pursuant to Rule 7.10.3, the application of a non-Defaulting Clearing Member’s Collateralised Contribution and Contingent Contribution for each Event of Default shall not exceed an amount equal to its required Collateralised Contribution and Contingent Contribution amounts as set out in Rule 7.2.1A(2) and (3).

Added on 26 May 2023 and amended on 31 October 2024.

Notwithstanding Rule 7.9 and subject to Rule 7.10.6, the aggregate amount of a non-Defaulting Clearing Member’s Collateralised Contribution and Contingent Contribution that can be applied in respect of all Events of Default occurring within a period of 30 calendar days shall not exceed an amount equal to three times of that Clearing Member's Prescribed Contributions as at the start of that 30-day period.

Added on 31 October 2024.

Where an Event of Default occurs, the amount of a non-Defaulting Clearing Member’s Collateralised Contribution and Contingent Contribution that is available for application in respect of that Event of Default is the lower of:

1. an amount equal to three times of the Clearing Member’s Prescribed Contributions as at the start of the 30-day period that ends on the day of the Event of Default less the aggregate amount of that Clearing Member’s Collateralised Contribution and Contingent Contribution that has already been utilised for all other preceding Events of Default that had occurred in that 30-day period; or
2. where the Clearing Member’s Collateralised Contribution was adjusted during the aforementioned 30-day period, an amount (“Adjusted Amount”) equal to three times of the consequently adjusted Prescribed Contributions less the aggregate amount of the Clearing Member’s Collateralised Contribution and Contingent Contribution that has already been utilised for Events of Default that occurred after the day of that adjustment but before the Event of Default.

In the event the Clearing Member’s Collateralised Contribution is adjusted multiple times during the 30-day period, a separate Adjusted Amount shall be calculated for each adjustment and the lowest Adjusted Amount shall apply for the purpose of this Rule 7.10.6(2).

Refer to Practice Note 7.10.5, 7.10.6.

Added on 31 October 2024.