Whole Section

  • 7.8 Application of Clearing Fund

    • 7.8.1

      Subject to Rule 7.8.2 and unless otherwise provided in the Clearing Rules or as determined by CDP, the Clearing Fund may be applied:—

      (1) to make good all losses suffered by CDP in connection with the breach by a Defaulting Clearing Member of any of its Novated Contracts;
      (2) to make good any shortfall of moneys payable by CDP to the other Clearing Members pursuant to Rule 6.4 and any costs and expenses incurred by CDP in making such payment; and
      (3) in respect of the obligations and liabilities of CDP arising out of the Novated Contracts (including but not limited to the costs and expenses incurred in relation to making recoveries from a Defaulting Clearing Member and in relation to any action taken by CDP pursuant to Rule 8).

      Amended on 23 January 200923 January 2009, 21 January 201321 January 2013 and 6 September 2021.

    • 7.8.2

      CDP shall apply the Clearing Fund only after the Defaulting Clearing Member's Collateral deposited with or provided to CDP has been fully applied to satisfy the obligations of the Clearing Member to CDP in accordance with Rule 8.6B.

      Added on 21 January 201321 January 2013.