7A.01B.4

Past version: Effective from 30 Jun 2014 to 11 Nov 2018

Notwithstanding the order of priority set out in Rule 7A.01B.3, the following applies where there is more than one auction under Rule 7A.02.1.5.b for an event of default in OTCF Contracts.

If funds that are apportioned to an auction ("first auction") are not exhausted after application pursuant to Rule 7A.01B.3, the unexhausted funds will be used to meet the losses that remain in the other auction(s) ("other auction(s)") in accordance with the following principles:

a. If a Clearing Member is liable to meet losses in the same order of priority in the first auction and the other auction(s), its unexhausted funds from the first auction 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.
b. If a Clearing Member is liable to meet losses in different orders of priority in the first auction and the other auction(s), its unexhausted Security Deposit from the first auction will be used in the source described in Rule 7A.01B.3.e in the other auction(s) and its unexhausted Further Assessment Amount from the first auction will be used in the source described in Rule 7A.01B.3.f in the other auction(s), but only after the funds in those sources apportioned to the other auction(s) have been exhausted.

Added on 30 June 201430 June 2014.