7A.06.1 Sources of Funds to Support Losses Borne by Clearing House
Added on 7 August 20127 August 2012 and amended on 12 November 201812 November 2018.
7A.06.2 Clearing Fund Deposit
Added on 7 August 20127 August 2012 and amended on 8 November 20128 November 2012, 26 April 201326 April 2013, 30 June 201430 June 2014, 19 October 201519 October 2015, 12 November 201812 November 2018 and 17 July 201917 July 2019.
7A.06.3 Further Assessment Amount
Added on 7 August 20127 August 2012 and amended on 8 November 20128 November 2012, 26 April 201326 April 2013, 29 July 201329 July 2013, 12 November 201812 November 2018 and 17 July 201917 July 2019.
7A.06.4 Aggregate Clearing House Contributions
Added on 7 August 20127 August 2012 and amended on 29 July 201329 July 2013, 30 June 201430 June 2014 and 17 July 201917 July 2019.
7A.06.6 Use of the Clearing Fund in Respect of Events of Default and/or Trigger Events Occurring Within a Multiple Default Period
7A.06.6.4 The Clearing Fund in the order of priority listed in Rule 7A.01A.2B.2 shall be used and applied in the following manner in respect of events of default and/or a Trigger Event occurring within a Multiple Default Period:
c. In the event that a utilisation of the Clearing Fund draws on only part of the funds available at any source under Rule 7A.01A.2B.2, the next utilisation of the Clearing Fund in connection with the next event of default and/or Trigger Event occurring within the same Multiple Default Period, shall:
ii. where the next event of default and/or Trigger Event occurs in one or more Contract Classes in which all preceding events of defaults and/or Trigger Event in that same Multiple Default Period were not involved, the draw down will revert to the start of the sequence of priority listed in Rule 7A.01A.2B.2 and:
Added on 7 August 20127 August 2012 and amended on 29 July 201329 July 2013, 30 June 201430 June 2014, 12 November 201812 November 2018, 17 July 201917 July 2019, 29 July 2022 and 31 October 2024.
7A.06.7 Rights of Clearing House for Recovery of Loss
Added on 7 August 20127 August 2012 and amended on 26 April 201326 April 2013, 29 July 201329 July 2013 and 17 July 201917 July 2019.
7A.06.8 Clearing Fund Deposits to be Restored
- 7A.06.8.1 In the event that it shall become necessary as provided in Rule 7A.06 to apply all or part of the Clearing Fund Deposits to meet obligations to the Clearing House (other than a Clearing Member's own obligation resulting from the substitution of the Clearing House on its trades), the Clearing Member shall immediately make good any such deficiency in Clearing Fund Deposits prior to the close of business on the Business Day immediately following such application.
- 7A.06.8.2 In the event that the limits to the application of the Clearing Member's Clearing Fund Deposit under Rule 7A.06.9 have been reached, the Clearing Fund Deposits restored in accordance with Rule 7A.06.8.1 shall be applied only to meet the Clearing Member's own obligations to the Clearing House, resulting from the substitution of the Clearing House on its trades.
Added on 7 August 20127 August 2012 and amended on 12 November 201812 November 2018 and 31 October 2024.
7A.06.9 Limit on Non-defaulting Clearing Members’ Liability for Multiple Events of Default
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:
- 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
- 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.