Past version: Effective from 01 Jul 2016 to 09 Dec 2018
Each Clearing Member undertakes and agrees to:—
(1) comply at all times with the applicable eligibility criteria set out in this Chapter 3;
(2) clear and settle any Exchange Trade transacted by it through CDP in accordance with this Clearing Rules and the Clearing Directives (where applicable);
(3) clear and settle any Exchange Trade transacted by a Trading Member qualified by it as a principal obligor and not merely as a guarantor through CDP in accordance with this Clearing Rules and the Clearing Directives (where applicable);
(4) comply with this Clearing Rules and the Clearing Directives (where applicable);
(5) grant CDP all rights and remedies as set forth in this Clearing Rules and the Clearing Directives (where applicable);
(6) pay CDP all fees, charges, costs, compensation and other sums as provided in this Clearing Rules and the Clearing Directives (where applicable);
(7) make such contributions or payments to the Clearing Fund as may be required in this Clearing Rules;
(8) generally take or refrain from taking such action as may be required in relation to the Clearing Fund;
(9) exercise reasonable supervision over its employees and agents with a view to preventing any violation of SFA (where applicable), this Clearing Rules and Clearing Directives (where applicable). For this purpose, a Clearing Member shall be deemed to have complied with this Rule 3.5.1(9) if:—
(a) it has established and maintained proper procedures and systems for its business, and in the case of a Bank Clearing Member, its business governed by this Clearing Rules, to prevent any such violations by its directors, officers, employees and agents;
(b) it has in place sufficient resources and established and maintained adequate internal control and risk management systems for its business, and in the case of a Bank Clearing Member, its business governed by this Clearing Rules; and
(c) the Clearing Member's employees or agents, have reasonably discharged their duties and obligations in enforcing the procedures and systems for its business, and in the case of a Bank Clearing Member, its business governed by this Clearing Rules;
(10) comply with the clearing limits as CDP may prescribe from time to time;
(11) maintain bank accounts in the currencies that may incur settlement and with banks acceptable to CDP;
(12) ensure that its Memorandum and Articles of Association or its constitution shall at all times conform to this Clearing Rules and the Clearing Directives (where applicable) so as to enable it to observe and perform fully the covenants, terms, stipulations, conditions and other provisions of this Clearing Rules and the Clearing Directives (where applicable); and
(13) take such steps, including without limitation procedural steps (whether of a technical or non-technical nature or otherwise), as CDP may require to ensure the orderly clearing and settlement of Exchange Trades qualified by the Clearing Member.
Amended on 1 July 20081 July 2008 and 1 July 20161 July 2016.