Past version: Effective up to 16 Jul 2019
Where an event of default is deemed to have occurred in OTCF Contracts, and more than one auction referred to in Rule 7A.02.1.5.b is held:
a. any losses that remain after each auction will be met by the sources of funds apportioned to OTCF Contracts and further apportioned to that auction, in the order of priority set out in Rule 7A.01A.2 (Clearing Fund Loss Allocation Mechanism), subject to Rule 7A.01B.3 (Clearing Fund Loss Allocation Mechanism for Contributions of Members Active in OTCF Contracts);
b. in the event that the Clearing House First Loss Contribution or the Clearing House Intermediate Contribution apportioned to an auction is not exhausted after losses in that auction are met, the unexhausted funds will be used in the corresponding source in the other auction(s), but only after the funds in that source apportioned to the other auction(s) have been exhausted.
Added on 30 June 201430 June 2014.