7A.06A.1 Sources of Funds to Support Losses Borne by Clearing House
7A.06A.1.1 The Connect Layer fund size shall be determined by the Clearing House.
7A.06A.1.2 The Connect Layer shall comprise:
a. the Clearing House Connect Layer Contribution; and
b. the Clearing Member Connect Layer Contribution Requirement.
7A.06A.1.3 The Clearing Member's proportionate share of the total Connect Layer required from all Clearing Members participating in the Connect Contracts (“Clearing Member Connect Layer Contribution Requirement”), shall be an amount determined by the Clearing House. Each Clearing Member's proportionate share of the total Connect Layer shall be determined based on the exposure that the Clearing Member brings to the Clearing House for their Connect positions, as well as its exposure relative to the Connect Broker’s net positions, taking into account factors including, but not limited to, the average stress loss of the Clearing Member’s Connect positions over a preceding period of up to three months.
Added on 29 July 2022.