In order to qualify a Trading Member, a Clearing Member shall:—
(1) inform CDP of such qualification of the Trading Member, and if CDP requests, such details of the Trading Member as CDP may from time to time specify;
(2) pay such administrative fee as CDP may from time to time levy for the processing of such applications;
(3) satisfy CDP that it has in place adequate internal control measures and risk management systems, including automated pre-execution credit control checks, to monitor the Trading Member's Exchange Trades and manage its risk exposure to such Exchange Trades;
(4) enter into a written agreement with the Trading Member setting out the terms and conditions governing their relationship, which shall include without limitation, risk management provisions such as the right to impose trading limits on the Trading Member; and
(5) undertake to inform CDP if it has knowledge or has reasons to believe that a Trading Member qualified by it has defaulted or may default in any of its obligations under the Exchange Trades transacted by the Trading Member; and
(6) have processes in place to minimise and manage any conflicts of interest, including but not limited to separating its front office and back office functions.
Amended on 18 September 201218 September 2012.