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Clearing Rules

Table of Contents

Exhibit A
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4. MARGIN

401. Margin Generally.

(a) House Margin

ICE Clear Credit shall, following the close of business on each ICE Business 

Day, and may, at any other time or times selected by ICE Clear Credit, determine 

the Margin requirement for a Participant in respect of House Positions with 

respect to each category of Initial Margin and of Mark-to-Market Margin (each, a 

“Margin Category”, and the related Margin requirement, a “Margin 

Requirement”). For each Margin Category for a Participant and for a given ICE 

Business Day, ICE Clear Credit shall calculate a net amount (a “Net House 

Margin Requirement”) (i) in the case of an Initial Margin Category, equal to the 

Participant’s Margin Requirement for such Initial Margin Category as of such ICE 

Business Day minus the Value of the Participant’s Margin held by ICE Clear 

Credit as Margin for such Initial Margin Category and (ii) in the case of a Mark-toMarket Margin Category, equal to the Participant’s Margin Requirement for such 

Mark-to-Market Margin Category (expressed as a positive number if owed by the 

Participant and a negative number if owed by ICE Clear Credit) minus the Value 

of the Participant’s Margin held by ICE Clear Credit as Margin for suchapplicable

Mark-to-Market Margin Category or plus the Value of ICE Clear Credit’s Margin 

held or deemed held by the Participant as MarginBalance for such Mark-toMarket Margin Category, as applicable. With respect to each Margin Category for 

a Participant:

(i) if the Net House Margin Requirement is negative, ICE Clear Credit shall 

(unless the Participant is, or a determination by ICE Clear Credit is 

pending as to whether the Participant is, in Default), with respect to 

Eligible Margin having a Value as close as reasonably practicable to (but 

not to exceed) the absolute value of the Net House Margin Requirement, 

(A) in the case of Mark-to-Market Margin, Transfer such Eligible Margin to 

the Participant, which Eligible Margin would, as applicable, either be 

applied to a Net House Margin Requirement for an Initial Margin Category 

or be available for withdrawal by the Participant, in accordance with the 

ICE Clear Credit Procedures, to the extent there is any excess after 

satisfying the Margin Requirement for each Initial Margin Category or (B) 

in the case of Initial Margin, Transfer such Eligible Margin to the 

Participant, in accordance with the ICE Clear Credit Procedures, to the 

extent there is any excess after satisfying the Margin Requirement for 

each Initial Margin Category.

(ii) if the Net House Margin Requirement is positive, the Participant shall 

Transfer to ICE Clear Credit, in accordance with the ICE Clear Credit 

Procedures, Eligible Margin having a Value at least equal to the Net 

House Margin Requirement, with such Transfer required to be made prior 

to the time established by ICE Clear Credit in the ICE Clear Credit 
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Procedures for this purpose on the ICE Business Day next following the 

ICE Business Day to which the close of business Net House Margin 

Requirement relates (or, if ICE Clear Credit notifies a Participant, in 

accordance with the ICE Clear Credit Procedures, of a Net House Margin 

Requirement other than in respect of its close of business determinations, 

within one ICE Clear Credit business hour of such notice); provided that (i) 

to the extent there is cash in a Participant’s House Margin Account in the 

relevant currency, ICE Clear Credit may withdraw from such account such 

cash to satisfy a Net House Margin Requirement for a Mark-to-Market 

Margin Category for the relevant House Position(s), and adjust the 

Participant’s Net House Margin Requirements accordingly; or

(iii) if the Net House Margin Requirement is zero, no Margin shall be required 

to be Transferred.

(b) Client-Related Margin.

ICE Clear Credit shall, following the close of business on each ICE Business 

Day, and may, at any other time or times selected by ICE Clear Credit, determine 

the Margin Requirement for a Participant in respect of Client-Related Positions 

with respect to each Margin Category.

(i) Initial Margin.

ICE Clear Credit shall calculate, in the case of an Initial Margin Category, the 

Participant’s Margin Requirement for each Non-Participant Party Portfolio minus 

the Value of the Margin held by ICE Clear Credit as Margin for such Initial Margin 

Category allocated by ICE Clear Credit to such Non-Participant Party Portfolio 

(each, a the “Non-Participant Party Portfolio Initial Margin Requirement”); 

With respect to each Initial Margin Category for a Participant:

(A) for each Non-Participant Party Portfolio Initial Margin Requirement 

that is positive, the Participant shall Transfer to ICE Clear Credit, in 

accordance with the ICE Clear Credit Procedures, Eligible Margin 

having a Value at least equal to such Non-Participant Party 

Portfolio Initial Margin Requirement, with such Transfer required to 

be made prior to the time established by ICE Clear Credit in the 

ICE Clear Credit Procedures for this purpose on the ICE Business 

Day next following the ICE Business Day to which the close of 

business Non-Participant Party Portfolio Initial Margin Requirement 

relates (or, if ICE Clear Credit notifies a Participant, in accordance 

with the ICE Clear Credit Procedures, of a Non-Participant Party 

Portfolio Initial Margin Requirement other than in respect of its 

close of business determinations, within one ICE Clear Credit 

business hour of such notice);
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(B) following the settlement in full of all amounts due to be Transferred 

to ICE Clear Credit pursuant to clause (A) above, for each NonParticipant Party Portfolio Initial Margin Requirement that is 

negative, ICE Clear Credit shall (unless the Participant is, or a 

determination by ICE Clear Credit is pending as to whether the 

Participant is, in Default), with respect to Eligible Margin having a 

Value as close as reasonably practicable to (but not to exceed) the 

absolute value of such Non-Participant Party Portfolio Initial Margin 

Requirement, Transfer such Eligible Margin to the Participant, in 

accordance with the ICE Clear Credit Procedures;

(C) if a Non-Participant Party Portfolio Initial Margin Requirement is 

zero, no Margin shall be required to be Transferred in respect 

thereof;

(ii) Mark-to-Market Margin.

ICE Clear Credit shall calculate, in the case of a Mark-to-Market Margin 

Category, a net amount equal to the Participant’s net Margin Requirement for 

such Mark-to-Market Margin Category for all Client-Related Positions in all NonParticipant Party Portfolios (expressed as a positive number if owed by the 

Participant and a negative number if owed by ICE Clear Credit) minus the Value 

of the Participant’s Margin held by ICE Clear Credit as Marginapplicable Mark-toMarket Margin Balance for such Mark-to-Market Margin Category or plus the 

Value of ICE Clear Credit’s Margin held or deemed held by the Participant as 

Margin for such Mark-to-Market Margin Category, as applicable (the “Net ClientRelated Mark-to-Market Margin Requirement”). With respect to each Mark-toMarket Margin Category for a Participant:

(A) if the Net Client-Related Mark-to-Market Margin Requirement is 

positive, the Participant shall Transfer to ICE Clear Credit, in 

accordance with the ICE Clear Credit Procedures, Eligible Margin 

having a Value at least equal to the Net Client-Related Mark-toMarket Margin Requirement, with such Transfer required to be 

made prior to the time established by ICE Clear Credit in the ICE 

Clear Credit Procedures for this purpose on the ICE Business Day 

next following the ICE Business Day to which the close of business 

Net Client-Related Mark-to-Market Margin Requirement relates (or, 

if ICE Clear Credit notifies a Participant, in accordance with the ICE 

Clear Credit Procedures, of a Net Client-Related Mark-to-Market 

Margin Requirement other than in respect of its close of business 

determinations, within one ICE Clear Credit business hour of such 

notice);

(B) if the Net Client-Related Mark-to-Market Margin Requirement is 

negative, ICE Clear Credit shall (unless the Participant is, or a 

determination by ICE Clear Credit is pending as to whether the 
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Participant is, in Default), with respect to Eligible Margin having a 

Value as close as reasonably practicable to (but not to exceed) the 

absolute value of the Net Client-Related Mark-to-Market Margin 

Requirement, Transfer such Eligible Margin to the Participant, in 

accordance with the ICE Clear Credit Procedures; and

(C) if the Net Client-Related Mark-to-Market Margin Requirement is 

zero, no Margin shall be required to be Transferred in respect 

thereof.

Notwithstanding anything to the contrary herein, amounts required 

to be Transferred between a Participant and ICE Clear Credit 

pursuant to any of clauses (i)(A)-(C) and/or (ii)(A)-(C) above of this 

subsection (b) shall not be netted or offset, except to the extent 

such netting or offset may be permitted by applicable law (including 

CFTC regulation or interpretation thereof).

(c) Notwithstanding anything to the contrary herein, in determining each Participant’s 

Margin Requirement as described above, ICE Clear Credit shall make separate 

Margin Requirement calculations for a Participant’s Client-Related Positions and 

for a Participant’s House Positions, notwithstanding that such positions would 

otherwise be in the same Margin Category. In no event shall the Margin 

Requirements for a Participant’s Client-Related Positions and House Positions 

be netted or offset against each other (except as specifically provided in these 

Rules), nor shall any Margin held or released in respect of Client-Related 

Positions be applied at any time to any Margin Requirement in respect of House 

Positions.

The Margin Requirement in respect of Initial Margin for a Participant’s ClientRelated Positions shall be calculated on a gross basis across each NonParticipant Party Portfolio (i.e., on the basis that all Client-Related Positions 

related to different Non-Participant Party Portfolios have not been offset pursuant 

to Rule 304).

(d) “Eligible Margin” means (i) with respect to Initial Margin, (A) in the case of 

satisfaction of an Initial Margin requirement, dollars or other currencies 

acceptable to ICE Clear Credit for this purpose and (B) in the case of 

substitutions of Initial Margin, assets, in the case of each of clauses (A) and (B), 

as specified in Schedule 401 as in effect from time to time and (ii) with respect to 

Mark-to-Market Margin, the currency in which the Contracts for the applicable 

Mark-to-Market Margin Category are denominated. Currencies must be in 

immediately available funds to qualify as Eligible Margin.

(e) “Value” means, (i) with respect to Eligible Margin consisting of dollars or another 

currency that qualifies as Eligible Margin for the applicable Margin Category, the 

amount thereof converted, if applicable, to the currency of the relevant Margin 

Requirement at such exchange rate as ICE Clear Credit in its discretion may 
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determine from time to time pursuant to the ICE Clear Credit Procedures, (ii) with 

respect to Eligible Margin consisting of assets, other than currencies, that qualify 

as Eligible Margin for the applicable Margin Category, the value thereof as 

determined by ICE Clear Credit (or its agent or custodian) pursuant to a 

methodology established by ICE Clear Credit from time to time in the ICE Clear 

Credit Procedures, and (iii) with respect to any currency or asset that does not 

qualify as Eligible Margin for the applicable Margin Category, zero.

(f) ICE Clear Credit shall establish and maintain a House Margin Account and a 

Client Omnibus Margin Account for each Participant. All Initial Margin required 

with respect to a Participant’s Client-Related Positions shall be Transferred to 

such Participant’s Client Omnibus Margin Account. All Initial Margin required with 

respect to House Positions of such Participant shall be Transferred to such 

Participant’s House Margin Account.

(g) ICE Clear Credit shall pay or charge, as applicable, a Participant interest for any

netprice alignment amounts on any Mark-to-Market Margin Transferred by ICE 

Clear Credit to the Participant and shall pay a Participant interest for any net 

Mark-to-Market Margin Transferred by the Participant to ICE Clear Credit and 

forBalance and pay or charge interest on any cash Margin (other than Mark-toMarket Margin) in such Participant’s Margin Accounts, in each case at an 

interesta rate (which may be negative) and on a frequency determined from time 

to time by ICE Clear Credit in the ICE Clear Credit Procedures.

(h) A Participant may substitute, in accordance with the ICE Clear Credit Procedures 

and applicable law, Eligible Margin for an amount of Initial Margin in such 

Participant’s House Margin Account or Client Omnibus Margin Account, as 

applicable, having a Value not to exceed such substitute Eligible Margin.

(i) Margin required to be provided by a Participant hereunder shall be provided at 

the time and in the manner specified in the ICE Clear Credit Procedures. Where 

Margin is available for withdrawal by a Participant in accordance with these 

Rules, if such Participant requests such withdrawal on an ICE Business Day by 

the deadline established in the ICE Clear Credit Procedures, ICE Clear Credit will 

transfer such margin to the relevant account of the Participant on such ICE 

Business Day.

(j) Notwithstanding anything to the contrary herein, if ICE Clear Credit determines 

one or more Non-Participant Party Portfolio Initial Margin Requirements or a Net 

Client-Related Mark-to-Market Margin Requirement in respect of a time other 

than its close of business determination (i.e., an intraday margin call) that would 

otherwise be required to be Transferred by a Participant in accordance with 

subsection (b) above, ICE Clear Credit may in lieu thereof increase the 

applicable Margin Requirement for House Positions for the applicable Margin 

Category.
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(k) Each Transfer of Mark-to-Market Margin shall constitute a settlement (within the 

meaning of CFTC Rule 39.14) and shall be final as of the time ICE Clear Credit’s 

accounts are debited or credited with the relevant payment.

(l) Once settlement of a Transfer of Mark-to-Market Margin in respect of the Margin 

Requirement for a Mark-to-Market Margin Category is final, the fair value of the 

outstanding exposures for the relevant Contracts in that Mark-to-Market Margin 

Category (taking into account the Mark-to-Market Margin provided in respect of 

such Margin Requirement) will be reset to zero.

. . . Interpretations and Policies:

.01 Margin required to be Transferred by a Participant shall be considered 

timely Transferred to ICE Clear Credit if (i) such Participant’s settlement 

bank guarantees, in a form acceptable to ICE Clear Credit, Transfer of 

such Margin prior to the time such Margin would be due in accordance 

with these Rules and (ii) such Margin is actually Transferred to ICE Clear 

Credit within a time period established by ICE Clear Credit.

.02 For the purposes of Chapter 4, the term “Open Positions” shall also 

include Trades that have been accepted by ICE Clear Credit pursuant to 

Rule 309 but not yet novated or established because the Novation Time 

has not yet occurred.

402. Transfer of Title; Liens.

(a) Each Participant (other than a Participant that is an FCM or a Broker-Dealer) 

agrees that all right, title and interest in and to any cash Transferred by such 

Participant to ICE Clear Credit under the terms of these Rules as Margin (other 

than Mark-to-Market Margin) or Collateral consisting of cash and all cash 

proceeds of any Margin or Collateral (collectively, “Cash Margin”) shall vest in 

ICE Clear Credit free and clear of any liens, claims charges or encumbrances.

Upon the occurrence of a Default, ICE Clear Credit shall be entitled to apply such 

cash Transferred to ICE Clear Credit by such Defaulting Participant and any cash 

proceeds of the Margin and Collateral of such Defaulting Participant to the 

Obligations of such Defaulting Participant to ICE Clear Credit in accordance with 

the provisions herein; provided that cash Transferred in respect of Client-Related 

Positions and constituting Margin and cash proceeds of Margin provided in 

respect of Client-Related Positions may only be applied to Obligations in respect 

of Client-Related Positions as set forth herein and only subject to the limitation 

set forth in subsection (h) below. Prior to the completion of the requirements 

under these Rules for the occurrence of a Default, ICE Clear Credit shall also be 

entitled to apply such cash to the Obligations of a Participant (but subject to the 

proviso to the preceding sentence) if such Participant has defaulted with respect 

to making a payment or delivery when due under these Rules or a Contract.
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(b) Each Participant hereby grants to ICE Clear Credit a continuing lien and security 

interest in and to and right of set-off against all of the Participant’s right, title and 

interest, whether now owned or existing or hereafter acquired or arising, in and to 

(i) all securities, financial assets and other property (other than cash) Transferred 

by such Participant to ICE Clear Credit under the terms of these Rules as Margin

(other than Mark-to-Market Margin) or Collateral not constituting cash, (ii) all noncash proceeds of any of the foregoing and (iii) in the case of a Participant that is 

an FCM or a Broker-Dealer, any cash Transferred by such Participant to ICE 

Clear Credit under the terms of these Rules as Margin (other than Mark-toMarket Margin) or Collateral consisting of cash and all cash proceeds of any 

Margin or Collateral, in each case as security for the Obligations of such 

Participant to ICE Clear Credit (jointly, (i), (ii) and (iii), the “Pledged Items”); 

provided that Pledged Items Transferred in respect of Client-Related Positions 

and constituting Margin shall only secure Obligations of such Participant in 

respect of Client-Related Positions and shall be subject to the limitation set forth 

in subsection (h) below and applicable law. Upon the withdrawal of Pledged 

Items by a Participant from its House Margin Account or Client Omnibus Margin 

Account, as applicable, in accordance with these Rules and the ICE Clear Credit 

Procedures, the security interest and lien granted hereunder on such Pledged 

Items will be released immediately without any further action by either party. With 

respect to Pledged Items in the form of cash credited to the House Margin 

Account of a Participant and constituting Mark-to-Market Margin, ICE Clear 

Credit will have the right to sell, pledge, rehypothecate, assign, invest, use or 

otherwise dispose of or use in its business such Pledged Items, free from any 

claim or right of any nature whatsoever of the Participant, including any equity or 

right of redemption by the Participant, subject to any requirements of the Rules, 

and with respect to other Pledged Items credited to the House Margin Account of 

a Participant constituting Initial Margin, ICE Clear Credit may use, invest or apply 

such Pledged Items as permitted by the Rules. With respect to Pledged Items 

credited to the Client Omnibus Margin Account of a Participant, ICE Clear Credit 

will only have the right to use, invest or apply such Pledged Items as permitted 

by the Rules and applicable law.

(c) Upon the occurrence of a Default, ICE Clear Credit may exercise all rights of a 

secured party under applicable law and under these Rules. ICE Clear Credit 

may, without being required to give any notice, except as may be required by 

law, sell or otherwise apply any Pledged Items Transferred to, or otherwise under 

the control of, ICE Clear Credit to satisfy the Participant’s Obligations.

Notwithstanding the foregoing, ICE Clear Credit may only exercise such rights 

with respect to, or otherwise dispose of or sell, Pledged Items Transferred in 

respect of Client-Related Positions and constituting Initial Margin (including 

Pledged Items Transferred to the Client Omnibus Margin Account) for the 

purposes of satisfying any outstanding Obligations of a Defaulting Participant in 

respect of Client-Related Positions and subject to the limitation set forth in 

subsection (h) below. Upon any such sale, ICE Clear Credit shall have the right 

to deliver, assign and transfer to the purchaser thereof the Pledged Items so 

sold. Each purchaser at any such sale shall hold the Pledged Items so sold to it 
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absolutely and free from any claim or right of whatsoever kind, including any 

equity or right of redemption of the Participant which may be waived, and the 

Participant, to the extent permitted by law, hereby specifically waives all rights of 

redemption, stay or appraisal which it has or may have under any law now 

existing or hereafter adopted.

(d) Each Participant represents that it is the sole owner of or otherwise has the right 

to Transfer to ICE Clear Credit the Pledged Items subject to the foregoing lien 

and security interest, free and clear of any security interest, lien, encumbrance or 

other restrictions in favor of any other person, and agrees not to create or permit 

to exist any such security interest, lien, encumbrance or other restrictions. The 

preceding sentence shall not preclude a Participant from Transferring to ICE 

Clear Credit Pledged Items that were provided to Participant by a Non-Participant 

Party and in which the Non-Participant Party has granted the Participant a 

security interest to secure the Non-Participant Party’s obligations to the 

Participant in respect of Client-Related Positions; provided that Participant 

agrees that any such security interest in favor of Participant is in all respects 

subject to the rights of ICE Clear Credit in respect of such Pledged Items 

hereunder and Participant shall not, and shall not attempt to (i) exercise any 

rights or remedies or bring any proceeding or action with respect to such Pledged 

Items until such Pledged Items are released from the lien and security interest of 

ICE Clear Credit hereunder or (ii) otherwise interfere with, delay the exercise of 

or take any action to affect ICE Clear Credit’s rights hereunder with respect to 

such Pledged Items. Each Participant agrees to take any action reasonably 

requested by ICE Clear Credit that may be necessary or desirable for ICE Clear 

Credit to create, preserve, perfect or validate the foregoing lien and security 

interest or to enable ICE Clear Credit to exercise or enforce its rights with respect 

thereto. With respect to any Pledged Items consisting of securities and other 

financial assets Transferred by ICE Clear Credit under the terms of these Rules, 

each Participant agrees it will accept securities and financial assets of the same 

issuer, type, nominal value, description and amount as those securities and 

financial assets initially Transferred by such Participant to ICE Clear Credit.

(e) (i) Each Participant agrees that all right, title and interest in and to any cash

Transferred by such Participant to ICE Clear Credit under the terms of these

Rules as Mark-to-Market Margin shall vest in ICE Clear Credit free and clear of 

any liens, claims, charges or encumbrances, and shall constitute a settlement 

payment for all purposes under the Rules as provided in Rule 401(k) in respect of 

the relevant Contracts; provided that with respect to such cash Transferred in

respect of Client-Related Positions, ICE Clear Credit shall only use such cash in 

accordance with applicable law.

(ii) Subject to subsection (f) below, ICE Clear Credit agrees that all right, title 

and interest in and to any cash Transferred by ICE Clear Credit to a Participant 

under the terms of these Rules and not used by or on behalf of the Participant to 

satisfy a Margin Requirement shall vest in such Participant free and clear of any 

liens, claims, charges or encumbrances.
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(f) With respect to Pledged Items Transferred to the Client Omnibus Margin Account 

of a Participant under Rule 406, ICE Clear Credit agrees that such Pledged 

Items, together with any proceeds thereof, shall constitute customer property 

held for the benefit of the Non-Participant Parties of Participant in accordance 

with applicable law and Rule 406, subject to the security interest and lien of ICE 

Clear Credit pursuant to subsection (b). For the avoidance of doubt, each 

Participant shall be obligated to Transfer Margin to ICE Clear Credit in respect of 

Client-Related Positions in accordance with these Rules notwithstanding any 

failure of a Non-Participant Party to provide such Participant with related margin 

in respect of such Client-Related Position.

(g) Where a Participant makes a partial Transfer of the Margin required to be 

Transferred on any date to ICE Clear Credit in respect of both Client-Related 

Positions and House Positions, such Margin shall be applied first to the 

outstanding Margin Requirement in respect of the Client-Related Positions until 

satisfied and thereafter to the outstanding Margin Requirement in respect of the 

House Positions, notwithstanding any designation made by the Participant as to 

the application of such Margin.

(h) Notwithstanding anything to the contrary herein, ICE Clear Credit shall only be 

permitted to use, apply or otherwise exercise rights pursuant to subsections (a), 

(b) and (c) above with respect to Cash Margin and Pledged Items (or the 

proceeds thereof) posted in respect of Client-Related Positions and constituting 

Initial Margin to the extent permitted under applicable law, including without 

limitation CFTC Rule 22.15 (and interpretations of the CFTC or its staff in respect 

thereof). For the avoidance of doubt, but subject to the foregoing sentence, ICE 

Clear Credit shall be permitted to select the specific assets so used or applied.

(i) Intentionally omitted.

(j) ICE Clear Credit may (i) invest Initial Margin in the form of cash in accordance 

with its investment policies and applicable law and (ii) in connection with a 

Participant default, use any Participant’s cash, securities or other property 

(whether or not such Participant is itself in default) constituting Initial Margin for 

its House Account from time to time to support liquidity arrangements (including 

borrowing, repurchase transactions, exchange of Initial Margin for other assets or 

similar transactions) of ICE Clear Credit relating to payment obligations of ICE 

Clear Credit, in a manner consistent with ICE Clear Credit’s Procedures and 

applicable law, including by way of assignment, transfer, exchange, pledge, 

repledge or creation of a lien on or security interest in such Initial Margin, under 

which equivalent value is provided for such Initial Margin and such equivalent 

value will be held as Initial Margin and used or applied by ICE Clear Credit solely 

for the purposes for which Initial Margin in the House Account may be used 

pursuant to these Rules. Without limiting the foregoing, ICE Clear Credit may on 

a temporary basis and in connection with a Participant default (A) exchange any 

Participant’s Initial Margin in its House Account held in the form of cash for 

securities of equivalent value, and/or (B) exchange a Participant’s Initial Margin 
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in its House Account held in the form of cash in one currency for cash of 

equivalent value in a different currency, in each case on such terms as ICE Clear 

Credit may determine in accordance with ICE Clear Credit Procedures. ICE Clear 

Credit will reverse any such exchange involving a Participant’s Initial Margin in its 

House Account as soon as practicable following the conclusion of the event 

requiring the exchange of a Participant’s Initial Margin for liquidity purposes. Prior 

to the occurrence of a Default with respect to a Participant, ICE Clear Credit may 

use, invest or apply the Initial Margin of such Participant only as set forth in this 

Rule 402(j) or the last sentence of Rule 402(a). This Rule 402(j) shall not be 

deemed to limit ICE Clear Credit’s rights to use or apply a Participant’s Initial 

Margin as permitted in the Rules, under applicable law or otherwise following the 

occurrence of a Default of that Participant.

403. Initial Margin.

“Initial Margin” shall consist of the Margin Categories listed in this Rule (collectively, 

the “Initial Margin Categories”). With respect to each Initial Margin Category, ICE 

Clear Credit shall determine the Margin Requirement pursuant to one or more 

methodologies established by ICE Clear Credit from time to time in the ICE Clear Credit 

Procedures. To protect itself and the other Participants, ICE Clear Credit may deviate 

from applying the methodologies uniformly to each Participant if ICE Clear Credit 

determines it appropriate to do so for risk management purposes in accordance with the 

ICE Clear Credit Procedures. Margin Requirements with respect to an Initial Margin 

Category shall be expressed as a positive number or as zero, as applicable.

(a) “Portfolio Risk Margin” means the Margin ICE Clear Credit requires related to 

the size and risk of a Participant’s Open Positions.

(b) “Physical Settlement Margin” means the Margin ICE Clear Credit requires to 

secure a Participant’s obligations in respect of a CDS Contract that is subject to 

Physical Settlement.

(c) “Super or Special Margin” means additional Margin ICE Clear Credit may 

require for any purpose at any time and from time to time in its sole discretion.

The methodology for determining Initial Margin shall incorporate, among other relevant 

factors, and as more fully set out in the ICE Clear Credit Procedures from time to time, 

(i) a minimum 5-day time horizon for the liquidation period (for both House Positions and 

Client-Related Positions) and (ii) one or more measures designed to limit procyclicality, 

including by avoiding when possible disruptive or big step changes in margin 

requirements and by establishing transparent and predictable procedures for adjusting 

margin requirements in response to changing market conditions. At all times, the 

measures designed to limit procyclicality will demonstrably meet or exceed the 

requirements of measures designed to limit procyclicality that either: (i) incorporate a 

ten year historical look-back period for computing Initial Margin; or (ii) assign at least 

25% weight to stressed observations in a look-back period beginning on April 1, 2007.
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404. Mark-to-Market Margin.

(a) “Mark-to-Market Margin” means the Margin required as a result of the market 

value of a Participant’s Open Positions. Each currency in which Contracts are 

denominated shall be treated as a separate Margin Category (each, a “Mark-toMarket Margin Category”). With respect to a Participant, the Margin 

Requirement for a Mark-to-Market Margin Category shall be the sum of the value 

of each Open Position in such Margin Category, determined by ICE Clear Credit 

by the application of the Mark-to-Market Price for the relevant Contract 

(expressed as a positive number if owed by the Participant and a negative 

number if owed by ICE Clear Credit). Margin Requirements with respect to a 

Mark-to-Market Margin Category shall be expressed as a positive or negative 

number or as zero, as applicable.

(b) “Mark-to-Market Price” means, for each Contract, the price determined in the 

manner designated by ICE Clear Credit for such Contract from time to time in the 

ICE Clear Credit Procedures. Notwithstanding the foregoing, when deemed 

necessary by ICE Clear Credit in order to protect the respective interests of ICE 

Clear Credit and Participants, ICE Clear Credit may set the Mark-to-Market Price 

for any Contract at a price deemed appropriate by ICE Clear Credit under the 

circumstances. When ICE Clear Credit determines that circumstances 

necessitate the application of the preceding sentence, the reasons for that 

determination and the basis for the establishment of the Mark-to-Market Price in 

such circumstances shall be recorded as provided in the ICE Clear Credit 

Procedures. To aid in the establishment of Mark-to-Market Prices, Participants 

are required to submit end of day prices in accordance with the ICE Clear Credit 

Procedures. The submission of those prices may result in a bilateral transaction 

which will subsequently be cleared in accordance with the ICE Clear Credit 

Procedures.

(c) “Mark-to-Market Margin Balance” means, with respect to a Participant and a 

Mark-to-Market Margin Category, as of any time of determination, a sum equal to 

(i) the aggregate Value of the Margin Transferred by the Participant to ICE Clear 

Credit as Margin for such Mark-to-Market Margin Category minus the Value of 

the Margin Transferred by ICE Clear Credit to the Participant as Margin for such 

Mark-to-Market Margin Category, in each case prior to such time of 

determination.

405. Intentionally Omitted.

406. Certain Requirements with Respect to Client-Related Positions of FCM 

Participants and Broker-Dealer Participants.

The provisions of this Rule 406 shall apply to Participants that are FCMs and/or BrokerDealers in respect of Client-Related Positions. Without limiting Rule 312, ICE Clear 

Credit shall have no obligation or liability to any Non-Participant Party in respect of a 

Client-Related Position or any transaction, agreement or arrangement between a 
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Participant and any Non-Participant Party. For the avoidance of doubt, Participants 

carrying Client-Related Positions that are swaps must be FCMs, and Participants 

carrying Client-Related Positions that are security-based swaps must be BrokerDealers.

(a) The relationship between a Non-Participant Party and a Participant in respect of 

Client-Related Positions for that Non-Participant Party shall be documented 

pursuant to and governed by a futures account agreement or clearing agreement 

(or equivalent document) agreed between such parties (“Customer Account 

Agreement”), subject to the applicable provisions of the Rules.

(b) A Participant shall require each Non-Participant Party to provide margin or 

collateral (“Non-Participant Collateral”) in an amount no less than the amount 

of Margin of each applicable Margin Category required on a gross basis by ICE 

Clear Credit with respect to the relevant Client-Related Position(s); provided that 

ICE Clear Credit may require additional margin with respect to Non-Participant 

Parties (or certain categories of Non-Participant Parties) as determined by ICE 

Clear Credit from time to time as required by applicable law. For this purpose, 

“gross basis” shall mean that the margin requirement will be determined giving 

effect to any offset of such Client-Related Positions against Client-Related 

Positions relating to the same Non-Participant Party, but without any offset of 

such Client-Related Positions against Client-Related Positions relating to a 

different Non-Participant Party.

(c) (i) A Participant shall receive, hold and use all Non-Participant Collateral only as 

permitted under CEA Section 4d(f) and the rules thereunder (including Part 22 of 

the CFTC Regulations and any interpretations thereof by the CFTC or its staff) 

and Securities Exchange Act Sections 3E(b) and/or 15(c)(3) and the rules 

thereunder, as applicable, and to the extent not inconsistent with the foregoing, 

as set forth in these Rules and the ICE Clear Credit Procedures (the “Swap 

Customer Segregation Requirements”). All property Transferred to ICE Clear 

Credit by Participant on behalf of Non-Participant Parties as Initial Margin shall 

be held in the Client Omnibus Margin Account of such Participant as cleared 

swaps customer property in accordance with the Swap Customer Segregation 

Requirements. Pursuant to this Rule, Participant shall satisfy the requirement to 

obtain any segregation acknowledgement letter from ICE Clear Credit under the 

Swap Customer Segregation Requirements.

(ii) Without limiting subsection (c)(i) above, the Client-Related Positions 

(including, solely to the extent permitted by applicable rules, orders or 

exemptions of the CFTC and SEC, Client-Related Positions that are 

security-based swaps) and related Non-Participant Collateral shall be part 

of the cleared swaps account class for purposes of Part 190 of the CFTC 

regulations.

(d) Property held in the Client Omnibus Margin Account may only be applied in 

respect of Client-Related Positions as provided in these Rules and only to the 
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extent permitted by the Swap Customer Segregation Requirements (including 

CFTC Rule 22.15).

(e) ICE Clear Credit shall pass through to the relevant Participant the return on any 

assets in the Client Omnibus Margin Account (including any return provided by 

ICE Clear Credit on Cash therein), less administrative costs as determined by 

ICE Clear Credit.

(f) In connection with any Client-Related Position and related Non-Participant 

Collateral, Participant shall keep and maintain written records required by the 

Swap Customer Segregation Requirements. Each Participant shall provide such 

reports to ICE Clear Credit with respect to Non-Participant Parties and their 

related Client-Related Positions and Non-Participant Collateral as and when 

required under the Swap Customer Segregation Requirements and otherwise 

upon request of ICE Clear Credit and upon such other basis, if any, as is 

provided in the ICE Clear Credit Procedures.

(g) Without limiting Rule 312, but subject to any contrary requirements of law: ICE 

Clear Credit shall not be liable to any Participant, Non-Participant Party or other 

Person for any losses, claims, liabilities, damages or expenses arising out of or 

relating to the holding, investment or use of the Client Omnibus Margin Account 

or assets credited thereto from time to time (“Custodial Losses”), except to the

extent such Custodial Losses result from the gross negligence or willful 

misconduct of ICE Clear Credit or from the investment of such assets by ICE 

Clear Credit in its discretion within the meaning of CFTC Rule 1.29(b). No 

Participant shall be liable to any Non-Participant Party for any Custodial Losses, 

except to the extent such Custodial Losses result from the gross negligence or 

willful misconduct of the Participant. ICE Clear Credit shall have no duties or 

responsibilities with respect to the Client Omnibus Margin Account except as 

expressly set forth in these Rules and applicable law. ICE Clear Credit shall have 

no responsibility for any investment decisions by a Participant (or any other 

Person) with respect to assets in the Client Omnibus Margin Account or for the 

results of any such investments and shall have no obligation to monitor the value 

of the assets in the Client Omnibus Margin Account or any requirements set forth 

in any applicable agreement between Participant and a Non-Participant Party.

ICE Clear Credit shall have no responsibility for the compliance by any 

Participant or Non-Participant Party with its obligations under any such 

agreement. ICE Clear Credit shall be under no obligation to inquire into, and shall 

be fully protected in relying on, any instructions or directions with respect to the 

Client Omnibus Margin Account or the assets therein or transferred thereto or 

therefrom under these Rules received from a Person ICE Clear Credit believes to 

be authorized to act on behalf of the appropriate Participant. In no event shall a 

Non-Participant Party attempt to interfere with the ability of ICE Clear Credit to 

exercise its rights as set forth in the Rules.

(h) Except with respect to Client-Related Positions resulting from transactions 

entered into on a designated contract market or national securities exchange, 
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each Non-Participant Party for which a Participant clears a Client-Related 

Position must be an “eligible contract participant” as defined in the CEA.

(i) Each Non-Participant Party consents to the disclosure by its Participant to ICE 

Clear Credit of such Non-Participant Party’s identity and information concerning 

the Client-Related Positions held by such Participant for such Non-Participant 

Party and related margin as set forth in the Rules.

(j) Each Non-Participant Party consents and agrees that in the event a Default has 

occurred with respect to its Participant or in the event of the insolvency of the 

Participant, (i) the Participant (or its receiver, insolvency trustee or similar official) 

and/or ICE Clear Credit shall be entitled to attempt to transfer its Client-Related 

Positions in accordance with Part 190 of the CFTC regulations, other applicable 

law and the Default Portability Rules, (ii) such Non-Participant Party appoints ICE 

Clear Credit as its lawful agent and attorney-in-fact to take such actions on behalf 

of the Non-Participant Party as ICE Clear Credit determines necessary or 

appropriate in order to effectuate the Default Portability Rules with respect to the 

Client-Related Positions carried by the Participant for such Non-Participant Party, 

including executing any document or instrument with respect to the transfer of 

the Client-Related Positions and/or exercising rights and remedies to transfer 

such positions; (iii) the Non-Participant Party shall take no action, including but 

not limited to attempting to obtain a court order, that could interfere with the 

ability of the Participant, any receiver, insolvency trustee or similar official, or ICE 

Clear Credit to take action contemplated by its Rules, including, without 

limitation, the transfer of positions and the transfer of related margin or collateral; 

(iv) any determination made by ICE Clear Credit with respect to the termination 

value of a Client-Related Position under the Rules shall be conclusive and 

binding absent manifest error and (v) any amount payable by such NonParticipant Party in respect of the termination of a Client-Related Position held by 

the Defaulting Participant for such Non-Participant Party shall not be netted or 

offset against any amount owed by such Participant to such Non-Participant 

Party under any other agreement or instrument and shall be paid directly to or as 

directed by ICE Clear Credit.

(k) Each Participant shall be required to obtain the agreement of each NonParticipant Party to the provisions of the Rules applicable to or otherwise 

referring to Non-Participant Parties (including Rule 312 and this Rule 406) and 

hereby represents and warrants to ICE Clear Credit that it has obtained such 

agreement.

(l) ICE Clear Credit will not accept the deposit of Margin from a Participant in 

respect of Client-Related Positions in excess of the amount required by ICE 

Clear Credit, within the meaning of CFTC Rule 22.13(c). For the avoidance of 

doubt, any Margin deposited with ICE Clear Credit that subsequently exceeds 

the amount required by ICE Clear Credit as a result of a change in the amount 

required or a change in the Value of such Margin will become available for 

withdrawal in accordance with Rule 401.
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8. GENERAL GUARANTY FUND

801. General Guaranty Fund Contribution.

(a) Participant Contributions.

(i) Each Participant shall Transfer to ICE Clear Credit, and thereafter 

maintain so long as it is a Participant, Collateral for deposit in the General 

Guaranty Fund in the form and in such amounts as may be determined by 

ICE Clear Credit as provided herein and in accordance with the ICE Clear 

Credit Procedures as in effect from time to time (“Required 

Contribution”), subject to the limitations herein and in Rules 802, 803, 

806 and 807. ICE Clear Credit shall cause appropriate entries to be made 

in its books and records to reflect the deposit of Collateral, the ICE Clear 

Credit Initial Contribution and the ICE Clear Credit Continuing Contribution

into the General Guaranty Fund. ICE Clear Credit shall have the sole right 

to withdraw cash, securities or other property from, and to authorize the 

sale or other disposition of any securities or other property held in, the 

General Guaranty Fund, subject to the limitations imposed in 

subparagraph (b)(v) of this Rule. A Participant may request, in accordance 

with the ICE Clear Credit Procedures, that ICE Clear Credit withdraw 

Collateral from the General Guaranty Fund and return it to the Participant 

to the extent the Participant’s contributions to the General Guaranty Fund 

exceed its Required Contribution and any Specific WWR Guaranty Fund 

Contribution (as defined below) at that time. A Participant may substitute, 

in accordance with the ICE Clear Credit Procedures, Collateral for an 

amount of Collateral currently on deposit in the General Guaranty Fund 

and credited to such Participant having a value, determined in accordance 

with the ICE Clear Credit Procedures, not to exceed that of such substitute 

Collateral. ICE Clear Credit shall pay a Participant interest for any net 

cash Collateral of such Participant in the General Guaranty Fund, at an 

interest rate and on a frequency determined from time to time by ICE 

Clear Credit in the ICE Clear Credit Procedures. The eligible forms of 

Collateral will be as set forth in Schedule 401 as in effect from time to 

time. Collateral provided by Participant may be invested only in 

accordance with the investment guidelines in the ICE Clear Credit 

Procedures.

Subject to the foregoing, the Required Contribution for a Participant as of

any date of determination shall be the greater of (x) such Participant’s 

proportionate share of the aggregate Participant Loss Exposure, which will 

be calculated as the two largest Participant Loss Exposures; and (y) 

$20,000,000. As used herein, “Participant Loss Exposure” means with 

respect to a Participant, the amount determined by ICE Clear Credit using 

stress test methodology, calculated on a net exposure basis separately 

within the House Positions and Client-Related Positions of that Participant, 

equal to the expected losses to ICE Clear Credit associated with the 
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Rev. 06/08XX/XX/2018

default of that Participant taking into account both (a) the uncollateralized 

loss (i.e., the loss after application of Initial Margin (and, for the avoidance 

of doubt, taking into account Mark-to-Market Margin Transferred in respect 

of such positions)) given default and (b) the uncollateralized loss from 

contracting or widening credit spreads.

ICE Clear Credit shall establish the aggregate amount of the Required 

Contributions to the General Guaranty Fund such that at a minimum ICE 

Clear Credit will maintain pre-funded financial resources sufficient to 

enable it to meet its financial obligations to Participants notwithstanding a 

default by the two Participants (including any of their affiliated Participants) 

creating the largest combined loss to ICE Clear Credit in extreme but 

plausible market conditions, consistent with the requirements of CFTC 

Rules 39.11 and 39.33.

808. Reduced Gains Distribution.

(a) The following terms will have the indicated meanings:

MTM

Mark-to-Market Margin as defined in Rule 404(a). References in this 

Rule 808 to the payment of MTM shall be construed as including 

obligations to transfer cash or other Eligible Margin as a result of changes 

in MTM Prices (as the difference between MTM Prices on different ICE 

Business Days) following a recalculation of the MTM Price and not to the 

total amount of MTM held by any Participant or ICE Clear CreditMark-toMarket Margin Balance at any time.

MTM Price

The Mark-to-Market Price as defined in Rule 404(b).

Outward MTM Payments

On any ICE Business Day, amounts in respect of MTM that ICE Clear 

Credit has calculated which would, but for this Rule 808, be payable in full 

by ICE Clear Credit to Contributing Participants (whether relating to their 

House Account or Client Origin Account) following the determination of 

MTM Prices for Contracts.

809. Partial Tear-Up

(d) Upon and with effect from the Partial Tear-Up Time, every Tear-Up Position shall 

be automatically terminated at the Partial Tear-Up Price, without the need for any 

further step by any party to such Contract. Upon such termination, either ICE 

Clear Credit or the relevant Participant, as the case may be, shall be obligated to 

pay to the other the applicable Partial Tear-Up Price (which, in either case, shall 
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Rev. 06/08XX/XX/2018

be satisfied only through application of any applicable Mark-to-Market Margin for 

such Tear-Up Position, determined for this purpose as though all Mark-to-Market 

Margin payments had been made in any relevant Loss Distribution Period without 

regard to any Cash Gainer Adjustments). Upon the termination of a Tear-Up 

Position, the corresponding Open Position of the Defaulting Participant shall be 

deemed terminated at the Partial Tear-Up Price.

(e) The Partial Tear-Up Price for each Tear-Up Position shall equal the Mark-toMarket Price established for such position as of the Partial Tear-Up Time, 

determined using the methodology customarily applicable for determining Markto-Market Prices. Such Partial Tear-Up Price shall be determined without regard 

to any Adjustment Amounts applied pursuant to Reduced Gains Distributions 

under Rule 808. 

810. Termination of Clearing.

(d) Upon and with effect immediately as from the Termination Time, every Open 

Position (other than, for the avoidance of doubt, any such Open Position that has 

been terminated or transferred prior to the Termination Time) shall be 

automatically terminated at the Termination Price, without the need for any 

further step by any party to such Contract.

(i) The termination price (the “Termination Price”) per unit of notional 

amount for purposes of any termination and final settlement pursuant to 

Rule 810 shall be the same for all Contracts of the same type and shall be 

the same for all Participants that are party to Contracts of such type.

Termination Prices shall be based upon the value of Contracts as at the 

Termination Time in accordance with the principles set out in this 

Rule 810(c) but without regard to any Adjustment Amounts applied 

pursuant to Reduced Gains Distributions under Rule 808. Such 

Termination Prices shall be calculated based on the latest established 

Mark-to-Market Price for each relevant Contract as at the Termination 

Time, determined using the methodology customarily applicable for 

determining Mark-to-Market Prices;

provided that, , ICE Clear Credit may, following consultation with the Risk 

Committee, determine that it should conduct a final price submission and 

price determination process to determine a Mark-to-Market Price for 

purposes of termination prior to or around the Termination Time in which it 

shall use its standard processes and procedures to determine the price 

and which Participants shall participate in fully, in good faith, using their 

standard processes and procedures and in accordance with applicable 

laws;

provided, further, that ICE Clear Credit may determine instead to use the 

last market quotation or settlement price established or published by 

another exchange, swap execution facility or clearing organization (that is 
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not subject to an insolvency) selected by ICE Clear Credit for an 

economically similar contract immediately prior to the Termination Time.

(ii) Any rebate, incentive scheme or fee discount arrangements that would 

otherwise result in amounts being payable by ICE Clear Credit (whether 

for itself or on behalf of any Market) in respect of Contracts to be 

terminated under this Rule 810 shall not be applicable in respect of such 

Contracts.

(iii) In carrying out any calculations or making any determinations pursuant to 

this Rule 810, ICE Clear Credit may convert any amounts denominated in 

one currency into another currency chosen by ICE Clear Credit in its 

discretion and at a prevailing market rate of exchange reasonably 

determined by ICE Clear Credit (using a third party source, if practicable).

(e) Final settlement with respect to such terminated contracts (the “Wound-Up 

Contracts”) will be made as follows. ICE Clear Credit shall determine a single 

net amount owed by or owed to each Participant in respect of House Positions 

and a single net amount owed by or owed to each Participant in respect of ClientRelated Positions shall be determined, which net amount for the avoidance of 

doubt shall take into account and be offset against Mark-to-Market Margin 

postedTransferred by such Participant to ICE Clear Credit and Mark-to-Market 

Margin postedTransferred by ICE Clear Credit to such Participant, as applicable

(in each case determined for this purpose as though all Mark-to-Market Margin 

payments had been made in any relevant Loss Distribution Period without regard 

to any Cash Gainer Adjustments). For purpose of this calculation, net amounts 

owed by a Participant with respect to Client-Related Positions may be offset and 

netted against net amounts owed to a Participant with respect to House 

Positions; provided that net amounts owed by a Participant with respect to House 

Positions may not be offset or netted against net amounts owed to a Participant 

with respect to Client-Related Positions.

ICE Clear Credit shall apply all amounts collected from Participants who owe ICE 

Clear Credit a net amount under the Wound-up Contracts (directly or through 

Margin deposited by such Participant (without duplication of Mark-to-Market 

Margin amounts taken into consideration in calculating such net amount) and 

other funds in or payable to the accounts of the Participant or from any applicable 

guarantor, provided that Margin provided in respect of Client-Related Positions 

may only be applied to the extent net amounts are owed in respect of ClientRelated Positions), plus all available amounts in the General Guaranty Fund in 

accordance with Rule 802, to pay all net amounts owed by ICE Clear Credit to 

Participants under the Wound-up Contracts, subject to the limitation of liability set 

forth in Rule 312. To the extent the amounts owed by ICE Clear Credit exceed 

the amounts available for payment, the amounts available for payment shall be 

prorated based on the relative net amounts owed by ICE Clear Credit to 

Participants under Wound-up Contracts.
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20-605. CDS Participant Default.

(c) In effecting the Closing-out Process as provided in this Rule and satisfying any 

Reimbursement Obligations with respect to the Defaulting CDS Participant, ICE 

Clear Credit shall apply the Margin and other assets provided by the Defaulting 

CDS Participant, as follows:

(i) With respect to the Open CDS Positions that are Client-Related Positions 

in any account of such Defaulting CDS Participant, to liquidate, set off 

and/or apply the following resources, in the following order, to cover any 

amounts paid by ICE Clear Credit in closing or replacing such ClientRelated Positions or any related Initial Cover Transactions (or in making 

payments or providing Mark-to-Market Margin to other Participants in 

respect of corresponding positions), including any commissions, losses, 

costs or expenses incurred in connection therewith or in connection with 

the liquidation of applicable Margin applied thereto pursuant to this 

subclause :

(A) any proceeds received by ICE Clear Credit from closing or 

replacing such Client-Related Positions or any related Initial Cover 

Transactions,

(B) any Mark-to-Market Margin provided to ICE Clear Credit with 

respect to such Client-Related Positions (to the extent not 

previously applied to pay Mark-to-Market Margin to other 

Participants),

(C) Initial Margin provided to ICE Clear Credit with respect to such 

Client-Related Positions; provided that Initial Margin allocated to a 

particular Non-Participant Party Portfolio and proceeds thereof shall 

only be used to satisfy obligations to ICE Clear Credit in respect of 

the Client-Related Positions in such Non-Participant Party Portfolio, 

in accordance with CFTC Rule 22.15; provided, further, that where 

ICE Clear Credit owes a net payment or Mark-to-Market Margin 

obligation to another Participant in respect of positions 

corresponding to Client-Related Positions of the defaulting 

Participant, ICE Clear Credit shall be entitled to apply the Initial 

Margin allocated to each Non-Participant Party Portfolio that owes 

a corresponding payment or Mark-to-Market obligation to ICE Clear 

Credit up to the amount of such payment or obligation,

(D) any payments actually received by ICE Clear Credit from or on 

behalf of the relevant Non-Participant Party under or in respect of 

the Client-Related Positions in its Non-Participant Party Portfolio,
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(E) any property or proceeds thereof deposited with or held by ICE 

Clear Credit as Margin for such Defaulting Participant’s House 

Positions,

(F) the Defaulting Participant’s Required Contribution and Specific 

WWR Guaranty Fund Contribution, if any, to the General Guaranty 

Fund as provided in Rule 802(a), and

(G) any other property of or delivered by the Defaulting CDS Participant 

(other than Margin for Client-Related Positions) within the 

possession or control of ICE Clear Credit (whether or not related to 

Open CDS Positions).

For purposes of the foregoing, ICE Clear Credit may, in its 

discretion use assets available pursuant to clause (E)-(G) prior to 

receipt of proceeds due pursuant to clauses (B)-(D), provided that 

any proceeds subsequently received pursuant to clauses (B)-(D) (to 

the extent not applied by ICE Clear Credit) will be used to 

reimburse the sources of such other assets used pursuant to 

clauses (E)-(G). For the avoidance of doubt, the provisions of this 

clause (c)(i) will not apply to Client-Related Positions transferred to 

or replaced with a Transferee Participant without loss to ICE Clear 

Credit pursuant to Rule 20A-02;

(ii) With respect to the Open CDS Positions that are House Positions in any 

account of such Defaulting CDS Participant, to liquidate, set off and/or 

apply the following resources, in the following order, to cover any amounts 

paid by ICE Clear Credit in closing or replacing such House Positions or 

any related Initial Cover Transactions (or in making payments or providing 

Mark-to-Market Margin to other Participants in respect of corresponding 

positions), including any commissions, losses, costs or expenses incurred 

in connection therewith or in connection with the liquidation of applicable 

Margin applied thereto pursuant to this subclause, and any other 

obligations of the Defaulting CDS Participant to ICE Clear Credit, including 

any obligations arising from any other accounts maintained by the 

Defaulting CDS Participant with ICE Clear Credit:

(A) any proceeds received by ICE Clear Credit from closing or 

replacing such House Positions or any related Initial Cover 

Transactions,

(B) any property or proceeds thereof deposited with or held by ICE 

Clear Credit as Margin for such Defaulting Participant’s House 

Positions,
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(C) the Defaulting Participant’s Required Contribution and Specific 

WWR Guaranty Fund Contribution, if any, to the General Guaranty 

Fund as provided in Rule 802(a), and

(D) any other property of or delivered by the Defaulting CDS Participant 

within the possession or control of ICE Clear Credit (whether or not 

related to Open CDS Positions), other than any property or 

proceeds thereof deposited with or held by ICE Clear Credit as 

Margin for such Defaulting Participant’s Client-Related Positions 

(including any amounts in the Client Omnibus Margin Account);

(iii) Notwithstanding the foregoing, to the extent any (a) property or proceeds 

thereof deposited with or held by ICE Clear Credit as Margin for such 

Defaulting Participant’s House Positions or (b) any other property of or 

delivered by the Defaulting CDS Participant within the possession or 

control of ICE Clear Credit, whether or not related to Open CDS Positions 

(other than any property or proceeds thereof deposited with or held by ICE 

Clear Credit as Margin for such Defaulting Participant’s Client-Related 

Positions and the Defaulting Participant’s Required Contribution to the 

General Guaranty Fund as provided in Rule 802) is to be applied pursuant 

to both clauses (i) and (ii) above, such property shall be applied first 

pursuant to clause (ii) above in respect of House Positions until the 

relevant obligations are satisfied and thereafter pursuant to clause (i) 

above in respect of Client-Related Positions. The Defaulting Participant’s 

Required Contribution to the General Guaranty Fund shall be applied as 

provided in Rule 802(a).