7.04.1.1 Relevant Market trades (other than trades matched on Connect Market) cleared by two Clearing Members
When a contract matched on a Relevant Market (other than trades matched on Connect Market) is cleared through the Clearing House by two Clearing Members, upon matching of the contract on the Relevant Market (other than trades matched on Connect Market), the original contract between the Clearing Members shall be discharged and replaced with two separate and distinct Contracts as described below, both of which are on the same terms as the original contract:
When a contract matched on a Relevant Market (other than trades matched on Connect Market) is cleared through the Clearing House by two Clearing Members, upon matching of the contract on the Relevant Market (other than trades matched on Connect Market), the original contract between the Clearing Members shall be discharged and replaced with two separate and distinct Contracts as described below, both of which are on the same terms as the original contract:
a. the Clearing Member who assumes the position of the buyer shall enter into a Contract with the Clearing House, which assumes the position of the seller, and
b. the Clearing Member who assumes the position of the seller shall enter into a Contract with the Clearing House, which assumes the position of the buyer.
7.04.1.2 The events described under Rule 7.04.1.1 shall be deemed not to have taken place if the Clearing House has received corrupt or unreadable data in respect of the original contract, or if the original contract is based on a series that is not eligible for clearing. Clearing Members will be notified in such instances.
7.04.1.3 Relevant Market trades (other than trades matched on Connect Market) cleared by a Clearing Member and a clearing member of another Relevant Market or its clearing house
Subject to Rule 7.04.1.4, when a contract matched on a Relevant Market (other than trades matched on Connect Market) is cleared by a Clearing Member and a clearing member of a Relevant Market or its clearing house (other than the Clearing House), the original contract shall be discharged and replaced with two separate and distinct Contracts as described below, both of which are on the same terms as the original contract:
Subject to Rule 7.04.1.4, when a contract matched on a Relevant Market (other than trades matched on Connect Market) is cleared by a Clearing Member and a clearing member of a Relevant Market or its clearing house (other than the Clearing House), the original contract shall be discharged and replaced with two separate and distinct Contracts as described below, both of which are on the same terms as the original contract:
a. a Contract between the Clearing Member and Clearing House, wherein:
i. the Clearing House assumes the position of the buyer if the Clearing Member assumes the position of the seller, and conversely,
ii. the Clearing House assumes the position of the seller if the Clearing Member assumes the position of the buyer; and
b. a Contract between the Relevant Market (or its clearing house) and the Clearing House, wherein:
i. the Relevant Market (or its clearing house) assumes the position of the buyer if the Clearing House assumes the position of the seller, and conversely,
ii. the Relevant Market (or its clearing house) assumes the position of the seller if the Clearing House assumes the position of the buyer.
7.04.1.4 The events described under Rule 7.04.1.3 shall take place only upon the occurrence of the following:
a. matching of the original contract on the Relevant Market (other than trades matched on Connect Market); and
b. confirmation by the Relevant Market (or its clearing house) that it will enter into the Contract described in Rule 7.04.1.3.b.
7.04.1.5 Notwithstanding Rule 7.04.1.4, the events described under Rule 7.04.1.3 shall be deemed not to have taken place if the Clearing House has received corrupt or unreadable data in respect of the original contract, or if the original contract is based on a series that is not eligible for clearing. Clearing Members will be notified in such instances.
Amended on 27 March 200627 March 2006, 22 September 200622 September 2006, 26 January 200726 January 2007, 3 November 20103 November 2010, 8 November 20128 November 2012, 26 April 201326 April 2013 and 29 July 2022.