Past version: Effective from 30 Jun 2014 to 11 Nov 2018
Subject to Rule 7A.01B.4, Clearing Members' Security Deposits and Further Assessment Amounts apportioned to an auction will be used, notwithstanding Rules 7A.01A.2.b and c., to meet the losses remaining after the auction in the following descending order of priority and manner, with each source of funds to be completely exhausted, subject to the limitations contained therein, before the next source is applied:—
a. Security Deposits of Participating Clearing Members which are apportioned to the auction, where such Participating Clearing Members did not participate in the auction.
Each such Participating Clearing Member's liability for the loss remaining will be on a pro-rata basis, calculated as the proportion of its Security Deposit requirement for OTCF Contracts relative to the aggregate Security Deposit requirement for OTCF Contracts of all Participating Clearing Members that did not participate in the auction.
b. Further Assessment Amounts of Participating Clearing Members which are apportioned to the auction, where such Participating Clearing Members did not participate in the auction.
Each such Participating Clearing Member's liability for the loss remaining will be on a pro-rata basis, calculated as the proportion of its Further Assessment Amount requirement for OTCF Contracts relative to the aggregate Further Assessment Amount requirement for OTCF Contracts of all Participating Clearing Members that did not participate in the auction.
c. Security Deposits of Participating Clearing Members which are apportioned to the auction, where such Participating Clearing Members submitted bids in the auction and their bids were below the Reference Price.
Each such Participating Clearing Member's liability for the loss remaining will be on a pro-rata basis, calculated as the proportion of the product of:
Each such Participating Clearing Member's liability for the loss remaining will be on a pro-rata basis, calculated as the proportion of the product of:
i. the distance between such Clearing Member's bid price and the Reference Price; and
ii. its Security Deposit requirement for OTCF Contracts,
relative to the aggregate of the product of Rule 7A.01B.3.c.i and ii for all Participating Clearing Members that submitted bids in the auction below the Reference Price.
d. Further Assessment Amounts of Participating Clearing Members which are apportioned to the auction, where such Participating Clearing Members submitted bids in the auction and their bids were below the Reference Price.
Each such Clearing Member's liability for the loss remaining will be on a pro-rata basis, calculated as the proportion of the product of:
Each such Clearing Member's liability for the loss remaining will be on a pro-rata basis, calculated as the proportion of the product of:
i. the distance between such Clearing Member's bid price and the Reference Price; and
ii. its Further Assessment Amount requirement for OTCF Contracts,
relative to the aggregate of the product of Rule 7A.01B.3.d.i and ii for all Participating Clearing Members that submitted bids in the auction below the Reference Price.
e. Security Deposits of Clearing Members which are apportioned to the auction and which are not available for use pursuant to Rule 7A.01B.3.a or c, or which have not been exhausted pursuant to Rule 7A.01B.3.c.
Each Clearing Member's liability for the loss remaining will be on a pro-rata basis, calculated as the proportion of its Security Deposit requirement for OTCF Contracts relative to the aggregate Security Deposit requirement for OTCF Contracts of all Clearing Members that have Security Deposits available for use under this Rule 7A.01B.3.e for the auction.
f. Further Assessment Amounts of Clearing Members which are apportioned to the auction and which are not available for use pursuant to Rule 7A.01B.3.b or d, or which have not been exhausted pursuant to Rule 7A.01B.3.d.
Each Clearing Member's liability for the loss remaining will be on a pro-rata basis, calculated as the proportion of its Further Assessment Amount requirement for OTCF Contracts relative to the aggregate Further Assessment Amount requirement for OTCF Contracts of all Clearing Members that have Further Assessment Amounts available for use under this Rule 7A.01B.3.f for the auction.
Added on 30 June 201430 June 2014.