8.01.1
This Chapter sets out the rights and responsibilities of Clearing Members with respect to a Mutual Offset System.
Amended on 10 August 200710 August 2007.
8.01.2
The procedures of the Clearing House, including the duties of a Clearing Member to members of the Participating Markets for whom the Clearing Member provides clearing services or with whom the Clearing Member has an agreement for Inter-Exchange Transfer (as defined in Rule 8.03.1.3), that are not specifically covered herein, shall be governed by the other provisions of this Rules that are consistent with this Chapter.
Amended on 27 March 200627 March 2006 and 10 August 200710 August 2007.
8.01.3
If the Clearing House has reason to believe that the access to or usage by a Clearing Member of the Mutual Offset System adversely affects the Clearing House or the Mutual Offset System, the Clearing House may suspend the Clearing Member's access to and/or usage of the Mutual Offset System.
Amended on 10 August 200710 August 2007.
8.02.1
The Mutual Offset System may be utilised for only those of the Designated Futures Contracts which may be prescribed by the Clearing House from time to time. The Clearing House may at any time and from time to time delist any contract as a Designated Futures Contract.
8.03.1
For the purposes of a Mutual Offset System and this Rules, the following additional definitions shall apply:
An Authorised Clearing Member of a Participating Market and/or its clearing house which:
An Authorised Clearing Member of a Participating Market and/or its clearing house that accepts and is responsible for executing and/or clearing of a trade on such Participating Market requested and/or initiated by an Originating Clearing Member of the other Participating Market pursuant to the Mutual Offset System.
A clearing member of a Participating Market and/or its clearing house that is authorised to gain access to and use, the Mutual Offset System.
Amended on 10 August 200710 August 2007.
8.04.1
So long as a Mutual Offset System is in effect as between the relevant Participating Markets, a trade will be transferred between Participating Markets and/or their respective clearing houses if all of the following conditions are satisfied:
Amended on 27 March 200627 March 2006 and 10 August 200710 August 2007.
8.05.1 Clearing Members
The Clearing Member who is the Executing Clearing Member with respect to a trade executed on the Exchange pursuant to a Mutual Offset System shall have the same responsibilities to the Clearing House for such trade as for any other trade made on the Exchange until the trade is transferred to another Participating Market.
After a trade executed on the Exchange is transferred to another Participating Market, the Executing Clearing Member shall have no further responsibility to the Clearing House for such trade and shall have no further responsibility to or relationship with the Originating Clearing Member with respect to the position created by such trade.
After a trade executed on a Participating Market other than the Exchange, is transferred to the Exchange, the Originating Clearing Member who is a Clearing Member shall have no further responsibility to or relationship with the Executing Clearing Member of the other Participating Market with respect to the position created by the trade, and the Originating Clearing Member who is a Clearing Member shall have a position on the Exchange and the same responsibilities to the Clearing House for such a position as it would have had if the trade creating the position had been executed on the Exchange and cleared by the Clearing Member.
8.05.2 Other Participating Markets Other Than Exchange
At such time as a trade executed on the Exchange is transferred to another Participating Market, the other Participating Market and/or its clearing house shall be substituted for the Executing Clearing Member who is a Clearing Member with respect to the position created by such trade.
At such time as a trade executed on a Participating Market, other than the Exchange, is transferred to the Exchange, the other Participating Market and/or its clearing house will have a position equal and opposite to the position created by such trade subject to the Inter-Exchange Transfer.
8.05.3 Trade Not Transferred Between Participating Exchanges
Until and unless a trade executed on the Exchange is transferred under the Mutual Offset System to the other Participating Market, the Executing Clearing Member (who is a Clearing Member) shall be and shall remain responsible to the Clearing House to the full extent as with any trade cleared and/or carried by the same.
8.06 Miscellaneous
Notwithstanding the foregoing, the Clearing House shall be entitled, as between the Clearing House and the Clearing Members, to make such rules as the Clearing House deems necessary in relation to any matter concerning the Mutual Offset System and the rights and obligations of the Clearing Members thereto whether by way of Directives or in such other manner as the Clearing House considers appropriate.