In addition to and without prejudice to the generality of the other provisions of these Clearing Rules, Rule 12 shall apply to an Exchange Trade transacted on such Foreign Exchange with which CDP may have direct or indirect clearing arrangements from time to time, or in relation to which trade CDP has clearing arrangements in place (such Exchange Trade is hereinafter referred to as a "Foreign Market Links Exchange Trade").

For the purposes of Rule 12, unless the context otherwise requires:—

A transaction of the Foreign Market Links Exchange Trade done through the Foreign Market Links System shall be novated to CDP only upon receipt by CDP of the confirmation by the Foreign Market Links System that the Foreign Market Links Exchange Trade has been done.

Upon such novation, the provisions of Rule 6 shall apply subject to:—

The modifications, amendments or variations, or such other rules as referred to in Rule 12.3.2 shall be set out in the Clearing Directives from time to time. Such modifications, amendments or variations, or such other rules shall become effective on such date as may be specified in the written notice to be given to the Clearing Member. The Clearing Member shall be deemed, by continuing to enter into the Foreign Market Links Exchange Trade at the time the modifications, amendments or variations, or such other rules take effect, to consent to and agree to be bound by the same.

Notwithstanding Rule 12.3, CDP shall have the flexibility of facilitating and/or clearing transactions of the Foreign Market Links Exchange Trade not done through the Foreign Market Links System without the novation of such transactions. CDP has the right to set out the rules applicable to such Foreign Market Links Exchange Trade in the Clearing Directives, which may be amended from time to time.