7A.06.9.1 Notwithstanding Rule 7A.01A.2B.2 and subject to Rule 7A.06.9.2, the aggregate amount of a non-defaulting Clearing Member’s Clearing Fund Deposit and Further Assessment Amount that can be applied to meet losses arising from or in connection with all events of default occurring within a period of thirty (30) calendar days shall not exceed an amount equal to three (3) times of that Clearing Member's Prescribed Contributions as at the start of that 30-day period.

7A.06.9.2 Where an event of default occurs, the amount of a non-defaulting Clearing Member’s Clearing Fund Deposit and Further Assessment Amount that is available to meet losses suffered by the Clearing House arising from or in connection with that default is the lower of:

1. an amount equal to three (3) times of the Clearing Member’s Prescribed Contributions as at the start of the 30-day period that ends on the day of the event of default less the aggregate amount of that Clearing Member’s Clearing Fund Deposit and Further Assessment Amount that has already been utilised to meet losses arising from or in connection with all other preceding events of default that had occurred in that 30-day period; or
2. where the Clearing Member’s Clearing Fund Deposit was adjusted during the aforementioned 30-day period, an amount (“Adjusted Amount”) equal to three (3) times of the consequently adjusted Prescribed Contributions less the aggregate amount of the Clearing Member’s Clearing Fund Deposit and Further Assessment Amount that has already been utilised to meet losses arising from or in connection with events of default that occurred after the day of that adjustment but before the event of default.

In the event the Clearing Member’s Clearing Fund Deposit is adjusted multiple times during the 30-day period, a separate Adjusted Amount shall be calculated for each adjustment and the lowest Adjusted Amount shall apply for the purpose of this Rule 7A.06.9.2.b.

Refer to Practice Note 7A.06.9.

Added on 31 October 2024.