1.1. Rule 7A.02.1.5.c.ii states that the Clearing House may assign residual OTCF positions of a suspended or defaulted Clearing Member to a non-defaulting Clearing Member which has cleared such product group in such currency in the last three months. The residual OTCF positions may be assigned if it is in the Clearing House's good faith opinion that an auction of such positions is impossible or impracticable.

1.2. This Practice Note explains what is meant by a product group and sets out the OTCF product group by currency referred to in Rule 7A.02.1.5.c.ii, which are cleared through the Clearing House.

2.1. A product group means a distinct group of OTCF Contracts in a specified currency for which the Clearing House offers clearing services.

2.2. The Product Groups by currency cleared through the Clearing House are as follows:

Product Group	Currency
Interest rate swaps	(a) Singapore dollars (b) US dollars
Non-deliverable foreign exchange forwards	(a) Chinese Yuan (b) Indian Rupee (c) Indonesian Rupiah (d) Korean Won (e) Malaysian Ringgit (f) New Taiwan Dollar (g) Philippine Peso
Non-deliverable interest rate swaps	(a) Malaysian Ringgit (b) Thai Baht

2.3. As an example, a suspended or defaulted Clearing Member's residual OTCF positions in Singapore dollar interest rate swaps may only be assigned to a non-defaulting Clearing Member which has cleared Singapore dollar interest rate swaps in the last three months. The residual OTCF positions may not be assigned to a non-defaulting Clearing Member which has cleared US dollar interest rate swaps, but not Singapore dollar interest rate swaps in the last three months.