8.6A.2

Past version: Effective from 21 Jan 2013 to 21 Apr 2013

For positions in novated Marginable Futures Contracts, immediately upon such breach under Rule 8.1.2, CDP may:—

(1) appoint 1 or more Clearing Members to whom all or any part of such positions shall be transferred to be handled for the Defaulting Clearing Member. When positions are so transferred, margins deposited thereon and any settlement due or collected must be delivered to CDP, to be entrusted to the Clearing Member or Members designated to handle the transactions;
(2) borrow securities, execute buying-in or offset against the customer's obligations under New Purchase Contracts and New Sale Contracts, on behalf of and at the risk of the Defaulting Clearing Member, for the purpose of meeting settlement obligations;
(3) execute hedging transactions, on behalf of and at the risk of the Defaulting Clearing Member, to eliminate or reduce market risk resulting from such positions; and
(4) without prejudice to Rule 8.6A.2(1), appoint 1 or more Trading Members to liquidate such positions on the behalf of and at the risk of the Defaulting Clearing Member.

Added on 23 January 200923 January 2009 and amended on 21 January 201321 January 2013.