OTC Clear Rates and FX Derivatives Clearing Rules
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View Current
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Table of Contents
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Preface
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PART I
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GENERAL PROVISIONS
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Chapter 1
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Definitions and Interpretation
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101
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Definitions
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102-110
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Interpretation
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Chapter 2
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General Provisions
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201
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Amendment
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202-205
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Liability
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206-211
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Force Majeure Events and Illegality
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212-214
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Disclosure of Information
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215-218
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Governing Law
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219-223
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Notice
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224
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Process Agent
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225
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Time Reference
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226-227
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Calculations and Currency
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228
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Third Party Rights
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PART II
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MEMBERSHIP
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Chapter 3
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General Provisions
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301
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OTC Clear Membership
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302
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Clearing Members
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303
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Qualification
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304-309
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Applications and Approval
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Chapter 4
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Legal Obligations
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401-402
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Continuing Obligations
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403-404
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Capital Requirement
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405-408
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Transfer of Membership
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409-412
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Reporting Obligation
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Chapter 5
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Information Obligations
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501
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Notifications by Clearing Members
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502
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Right to Demand Documents
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503
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Organization Structure
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504
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Financial Information
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505
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Record Keeping
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Chapter 6
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Suspension and Termination of Membership
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601-603
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Suspension
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604-606
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Resignation
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607
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Termination
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608-612
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Resignation and Termination
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613
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Former Clearing Members
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Chapter 7
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Designated Person
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701-707
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General
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708
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Continuing Authority of a Designated Person
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709
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Acknowledgment by a Designated Person
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Chapter 7A |
Sponsored Settlement Member |
7A01-7A06
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General
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PART III
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CLEARING OPERATIONS
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Chapter 8
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Clearing by OTC Clear
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801-805
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Acceptance for Registration of Original Transactions
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806-811
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Creation of Contracts through Submission of Original Transactions by Clearing Members or Clients
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812
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Clearing Members’ Representations as at Registration Time
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813
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Creation of Contracts other than through Submission of Original Transaction by Clearing Members or Clients
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814-814B
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Termination of Contracts relating to Ineligible Original Transactions after Registration
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815
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Transfers of Contracts
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816-818
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Client Clearing
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819-822
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Types of Client Clearing Categories
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823-824
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Segregation of Client Accounts
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825-829 |
Porting of Contracts relating to Clients |
830 |
Full Portfolio Porting |
831 |
Partial Portfolio Porting |
832 |
Porting of Client Collateral |
833 |
Conditions Precedent to Porting of Contracts relating to Clients |
834-835
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Completion of Porting
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836-837 |
Transfer of Contracts between Client Accounts and House Accounts |
Chapter 9
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Accounts
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901
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Accounts
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902
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Position Accounts
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903-904
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Collateral Accounts
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905-906
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GF Accounts
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907 |
Multiple Client Accounts |
908-909
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Accounts for Holding of Non-Cash Collateral
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Chapter 10
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Payments
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1001
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Contract Payments
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1002
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Margin and Rates and FX Contribution
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1002A |
Reimbursement of Costs and Expenses |
1003
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Default Interest
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1004
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Interest Rates
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1005
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Income on Cash Collateral
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1006-1008C
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Income and Redemption Proceeds on Non-Cash Collateral
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1009-1011
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Fees, Levies and Charges
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1012-1015
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Payments Calculation
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Chapter 10A |
Interest Rate Transition
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10A01-10A08 |
Interest Rate Transition
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Chapter 11
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Tax
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1101-1105
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Tax
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PART IV
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RISK MANAGEMENT AND DEFAULT PROCEDURES
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Chapter 12
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Margin
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1201-1203
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Margin and Collateral
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1204-1208
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Initial Margin, Additional Margin, Variation Margin, and Intra-day Variation Margin
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1209-1213
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Margin Settlement
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1214-1218A
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Acceptable Collateral for Margin and Rates and FX Contribution
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1219-1221
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Rights relating to Collateral in respect of Margin and Rates and FX Contribution and Representations of Clearing Members
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1222-1224
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Position Limits and Notional Exchange Risk Limits
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Chapter 13
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Default Procedures
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1301-1302
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Clearing Member Event of Default
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1303-1305
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Termination following a Clearing Member Event of Default
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1306-1310
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Calculations of Net Payment following a Clearing Member Event of Default
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1311
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Termination of the Membership of a Defaulting Clearing Member
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1312-1315
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General Provisions relating to Clearing Member Event of Default
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1316
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Indemnity
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1317-1321
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OTC Clear Failure to Pay Event
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1322-1323
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OTC Clear Insolvency Event
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1324-1325
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Calculations of Net Payment following OTC Clear Default
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Chapter 14
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Disciplinary Actions and Proceedings
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1401-1402
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Situations Calling for Disciplinary Action
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1403
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Co-operation
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1404
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Notification
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1405
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Disciplinary Actions
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1406-1408
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Procedures relating to Disciplinary Committee
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1409-1410
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Appeals to the Disciplinary Appeals Committee
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1411-1414
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Grounds for Appeal
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1415-1417
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Order as to Costs
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Chapter 15
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Rates and FX Guarantee Resources
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1501-1502
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Rates and FX Guarantee Resources Purpose
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1503
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Calculations relating to the Rates and FX Guarantee Fund, Rates and FX Assessments and Rates and FX Contribution Balance
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1504
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Initial Rates and FX Contribution
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1505
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Further Rates and FX Contribution
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1506-1507
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Rates and FX Assessments Demand
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1508-1511
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Rates and FX Contribution due to Recalculations or Replenishments
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1512-1513
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Changes to Calculations relating to the Rates and FX Guarantee Fund and Rates and FX Assessments
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1514
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OTC Clear Use of the Rates and FX Guarantee Resources
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1515-1518
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Reduction of Losses on a DMP Event and Application of the Rates and FX Guarantee Resources
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1519-1521
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Accounts of Rates and FX Guarantee Resources
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1522
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Recoveries
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1523-1528
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Loss Distribution Process
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1529
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Rates and FX Clearing Service Limited Recourse
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1530-1540
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Winding Down of the Rates and FX Clearing Services
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1541-1543A |
Voluntary Recapitalisation
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1544-1545
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Multiple DMP Events
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1546-1549
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Terms of Redelivery or Repayment of Rates and FX Contribution
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Chapter 15A
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Default relating to a Sponsored Settlement Member
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15A01-15A02
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Default relating to a Sponsored Settlement Member
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PART V
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DEFAULT MANAGEMENT PROCESS
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Chapter 16
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Default Management Process
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1601-1604
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Default Management Process
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1605-1608
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Default Management Group
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1609
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Undertaking by Clearing Members
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1610-1612
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Amendments to Default Management Process
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Chapter 17
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Porting
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1701-1710
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Porting
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Chapter 18
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Hedging
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1801-1804
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Hedging
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Chapter 19
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Auction
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1901-1904
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Auction Portfolios
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1905
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Auction for Multiple Auction Portfolios
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1906-1909
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Conduct of Auction
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1910-1912
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Bidding
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1913-1913C
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Initial Allocation of Resources
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1914-1917
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Loss Allocation
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1918-1919
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Successive Auction
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1920
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OTC Clear Financial Resources
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1921-1922
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Registration of Auction Contracts
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1923-1924
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Failed Registration
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Chapter 20
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Confidentiality Obligations relating to Receipt of DMP Information
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2001-2004
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Confidentiality
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2005
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Term
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2006
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Rights to DMP Information
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2007
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Liability of OTC Clear
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2008-2009
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Relief
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Chapter 21
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Obligations, Undertaking and Liability of Clearing Members relating to Participation in the Default Management Group
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2101-2103
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Confidentiality Obligations
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2104
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Conflict of Interest
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2105
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Representations and Warranties
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2106
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No Liability
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PART VI
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PRODUCT SPECIFIC TERMS
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Chapter 22
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Product Specific Terms for Standard Rates Derivatives Contracts
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2201-2202
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Product Specific Terms for Standard Rates Derivatives Contracts
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2203-2210
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Interpretation
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2211-2215
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Economic Terms
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2216
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General Terms
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2217
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Clearing Rules
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2218-2221
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Economic and Monetary Union (EMU) Provisions
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2222
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Negative Interest Rates
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2223
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(Deleted) |
2224
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Rounding
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2225
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Tax Provisions
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2226
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Calculation Agent
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2227
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Governing Law
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Chapter 23
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Product Specific Terms for Non Deliverable Rates Derivatives Contracts
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2301-2302
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Product Specific Terms for Non Deliverable Rates Derivatives Contracts
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2303-2310
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Interpretation
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2311-2315
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Economic Terms
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2316
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General Terms
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2317
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Clearing Rules
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2318
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Calculation Agent
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2319
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Negative Interest Rates
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2320
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Rounding
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2321
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Tax Provisions
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2322
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Governing Law
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Chapter 24
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Product Specific Terms for Non Deliverable FX Derivatives Contracts
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2401-2402
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Product Specific Terms for Non Deliverable FX Derivatives Contracts
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2403-2411
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Interpretation
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2412-2416
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Economic Terms
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2417
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General Terms
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2418
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Clearing Rules
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2419
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Calculation Agent
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2420
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Rounding
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2421
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Tax Provisions
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2422
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Governing Law
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Chapter 25
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Product Specific Terms for Standard Cross-currency Rates Derivatives Contracts
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2501-2502 |
Product Specific Terms for Standard Cross-currency Rates Derivatives Contracts |
2503-2510 |
Interpretation |
2511-2515 |
Economic Terms |
2516 |
General Terms |
2517 |
Clearing Rules |
2518 |
Negative Interest Rates |
2519 |
Rounding |
2520 |
Tax Provisions |
2521 |
Calculation Agent |
2522
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Governing Law
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Chapter 26
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Product Specific Terms for Deliverable FX Derivatives Contracts
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2601-2602 |
Product Specific Terms for Deliverable FX Derivatives Contracts |
2603-2610 |
Interpretation |
2611-2615 |
Economic Terms |
2616 |
General Terms |
2617 |
Clearing Rules |
2618 |
Calculation Agent |
2619 |
Rounding |
2620 |
Tax Provisions |
2621 |
Governing Law |
Appendix I |
Chapter XVII - (deleted) |
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Supplement I
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SOFR DISCOUNTING SWITCH SUPPLEMENT
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