7.20.1 Acceptable Margin

Past version: Effective up to 25 Apr 2013

Margin requirements shall be prescribed by the Clearing House from time to time. The Clearing House will accept as margin, cash, government securities, Common Stocks or Letters of Credit to the order of the Clearing House in a form and from a bank acceptable to the Clearing House (and in accordance with such procedures as may be prescribed by the Clearing House) (individually "Asset or Property" and collectively "Assets or Properties"), all of which must be and remain unencumbered.

A Clearing Member may on approval and as prescribed by the Clearing House deposit such Assets or Properties, subject to such terms and conditions as shall have been approved by the Clearing House and in such denominations as may be prescribed by the Clearing House from time to time towards the satisfaction of margining obligations prescribed under these Rules.

The Clearing Member shall designate, whether such Assets or Properties are to be maintained as margin for its Customer Contracts or its House Contracts. Such Assets or Properties will be held by the Clearing House for that relevant account.

The Clearing House shall value such Assets and Properties for margin purposes as it deems appropriate. The Clearing House shall, at its sole discretion, determine what Asset or Property will be acceptable as margin and to determine when any Asset or Property will cease to be acceptable as margin and valuation to be attributed thereto.

If any Asset or Property lodged by any Clearing Member is found in any way to be unacceptable by the Clearing House, such Asset or Property will immediately be given zero value for the purposes of the Clearing Member's margin obligations under these Rules. Replacement margin may be immediately required from the Clearing Member in such an event.

In the event of any dispute as to any matters covered in this Rule, the Clearing House's decision shall be final and binding.

Amended on 27 March 200627 March 2006.