7A.02.3

7A.02.3.1 All costs and expenses sustained by the Clearing House in connection with any steps which are or may be taken by the Clearing House pursuant to Rule 7A.02.1, including losses incurred from authorized hedging transactions and the unwinding of such hedging transactions, shall be charged to the account of the defaulted Clearing Member after all outstanding rights and liabilities in respect of all its Contracts with the Clearing House have been determined, and shall be set off against all other amounts owed and owing between the defaulted Clearing Member and the Clearing House, to produce a net sum payable by either party to the other.
7A.02.3.2 All costs and expenses incurred by the Clearing House in connection with any steps which may be taken by the Clearing House in pursuant to Rule 7A.02A to liquidate the position of the Connect Broker in the event of a Trigger Event will be charged to the Connect Counterparty and be satisfied by the use of the Connect Counterparty’s collateral.

Added on 7 August 20127 August 2012 and amended on 25 May 201525 May 2015 and 29 July 2022.