Classification: Public

LCH SA

CDS Clearing Supplement

03 August 2021[●]
LCH SA © 2021 Published on 30 July 2021[●]

This document is for use with the clearing of index linked credit derivative transactions, single name 

credit derivative transactions and swaption transactions in respect of index linked credit derivative 

transactions. The CDS Clearing Supplement is split into three parts, Part A, Part B and Part C. 

Part A of the CDS Clearing Supplement shall only be used in connection with any single name credit 

derivative transactions or components of index linked credit derivative transactions that incorporate 

the 2003 ISDA Credit Derivatives Definitions, as published by the International Swaps and Derivatives 

Association, Inc. 

Part B of the CDS Clearing Supplement shall only be used in connection with any single name credit 

derivative transactions or components of index linked credit derivative transactions that incorporate 

the 2014 ISDA Credit Derivatives Definitions, as published by the International Swaps and Derivatives 

Association, Inc. 

Part C of the CDS Clearing Supplement shall only be used in connection with any swaption transactions, 

which give to a buyer the right to enter into an index linked credit derivative transaction with a seller, 

that incorporate the 2006 ISDA Definitions and the 2014 ISDA Credit Derivatives Definitions, as 

published by the International Swaps and Derivatives Association, Inc. 
LCH SA © 2021

PART A

CDS CLEARING SUPPLEMENT

FOR INDEX CLEARED TRANSACTIONS AND SINGLE NAME TRANSACTIONS INCORPORATING THE 

2003 ISDA CREDIT DERIVATIVES DEFINITIONS

CONTENTS

SECTION PAGE

1. GENERAL PROVISIONS ............................................................................................................. 34

2. TERMS OF CLEARED TRANSACTIONS ............................................................................................. 45

3. PAYMENTS AND DELIVERIES ............................................................................................................ 53

4. CREDIT EVENTS, SUCCESSION EVENTS AND RENAME EVENTS............................................... 54

5. RESTRUCTURING .................................................................................................................................. 58

6. PHYSICAL SETTLEMENT ..................................................................................................................... 60

7. DELIVERY OF NOTICES AND FALLBACKS...................................................................................... 72

8. MATCHED PAIR DESIGNATIONS AND NOTICES ............................................................................ 81

9. SELF-REFERENCING TRANSACTIONS .............................................................................................. 85

10. MANDATORY PROVISIONS FOR CCM CLIENT TRANSACTIONS ................................................ 89

11. AMENDMENTS ....................................................................................................................................... 89

12. FORMS OF NOTICES.............................................................................................................................. 89

13. EXCLUSION OF LIABILITY .................................................................................................................. 90

14. DISPUTE RESOLUTION ......................................................................................................................... 90

15. GOVERNING LAW.................................................................................................................................. 90
LCH SA © 2021 1 Published on 30 July 2021[●]

1. GENERAL PROVISIONS

1.1 Incorporation of Defined Terms 

Capitalised terms used in this CDS Clearing Supplement and not otherwise defined herein 

shall have the meaning given pursuant to the Index Cleared Transaction Confirmation, Single 

Name Cleared Transaction Confirmation, the 2003 ISDA Credit Derivatives Definitions or the 

CDS Clearing Rule Book, as applicable. In the case of any such terms defined in the CDS 

Clearing Rule Book, such terms shall be interpreted in accordance with the governing law 

specified therefore in the CDS Clearing Rule Book. 

1.2 Terms defined in the CDS Clearing Supplement

For the purposes of the CDS Clearing Documentation, the following capitalised terms shall, 

unless otherwise specified, have the respective meanings set out below: 

2003 ISDA Credit Derivatives Definitions: The 2003 ISDA Credit Derivatives Definitions 

published by ISDA as supplemented by the 2009 ISDA Credit Derivatives Determinations 

Committees, Auction Settlement and Restructuring Supplement to the 2003 ISDA Credit 

Derivatives Definitions, including the DC Rules and Credit Derivatives Auction Settlement 

Terms (each as defined therein).

2014 ISDA Credit Derivatives Definitions: The 2014 ISDA Credit Derivatives Definitions

published by ISDA.

Affected Cleared Transaction: Following a DC Credit Event Announcement or a publication 

by the DC Secretary of: 

(a) a Succession Event Resolution; or

(b) a DC Resolution that a Substitute Reference Obligation has been determined,

a Cleared Transaction that references the affected Reference Entity and/or Reference 

Obligation, as applicable.

Buy-in Effective Date: As set out at Section 6.8 (Buy-in of Bonds – Matched Seller has entered 

into CCM Client Transaction).

CCM Client Cleared Transaction: A Cleared Transaction between a CCM and LCH SA 

registered in a CCM Client Trade Account of a CCM.

CCM Client Transaction: A Transaction between a CCM and a CCM Client which is on the 

same economic terms as its corresponding CCM Client Cleared Transaction.

CCM Client Transaction Documents: The documentation entered into by a CCM and its CCM 

Client to document a CCM Client Transaction.

CDSClear Preferred Reference Obligation This term shall have the meaning set out in Section 

4 of the Procedures.
LCH SA © 2021 35 Published on 30 July 2021[●]

CDSClear Product Committee: A committee composed of representatives of LCH SA and 

representatives of Clearing Members for the purposes of carrying-out the tasks apportioned 

to it by the CDS Clearing Documentation as further described in the terms of reference for 

such committee, agreed in consultation with the Clearing Members and as may be amended 

from time to time in consultation with the Clearing Members. 

CDS Clearing Rule Book: The document entitled "CDS Clearing Rule Book" published by LCH 

SA, as amended from time to time.

CDS Type: A class of Cleared Transactions that are identical as to their terms, except that 

they may differ as to: 

(a) the Trade Date;

(b) in respect of Index Cleared Transactions, the Original Notional Amount;

(c) in respect of Single Name Cleared Transactions, the Effective Date (provided that the 

current and future Fixed Rate Payer Calculation Periods for such Single Name Cleared 

Transactions are the same), the Floating Rate Payer Calculation Amount and the 

Reference Obligation (provided that LCH SA determines that the Reference 

Obligations of the Cleared Transactions are equivalent for the purposes of this CDS 

Clearing Supplement);

(d) the Initial Payment Payer; 

(e) the Initial Payment Amount; 

(f) the Initial Payment Date; and

(g) the identity of the relevant Buyer and Seller.

CEN Triggering Period: In relation to any Restructuring Cleared Transaction, the period during 

which the parties thereto may deliver a Restructuring Credit Event Notice in relation to all or 

part of such Restructuring Cleared Transaction, such period starting at 9:00 a.m. on and 

including the earlier to occur of:

(a) the Transaction Business Day following publication of the related Final List; and

(b) the tenth calendar day following the No Auction Announcement Date,

and ending on and including the Exercise Cut-off Date.

Clearing Member Acknowledgement: As set out at Section 7.7 (Clearing Member 

Acknowledgements).

Clearing Member Communications Failure Event: As set out at Section 7.4 (Notification of 

DTCC Failure and Resolution).

Clearing Member Self Referencing Transaction: A Single Name Cleared Transaction which is 

registered in the House Account Structure of the Clearing Member and in respect of which, 
LCH SA © 2021 36 Published on 30 July 2021[●]

the Reference Entity is either the relevant Clearing Member or an Affiliate of such Clearing 

Member. 

Client Self Referencing Transaction: A Single Name Cleared Transaction (a) that is registered 

in the Client Account Structure of a Clearing Member; and (b) in respect of which, the 

Reference Entity is either the relevant Client or an Affiliate of such Client.

Compression Cut-off Date: The last date on which a Clearing Member may submit a request 

for any Cleared Transaction to be compressed pursuant to the ad hoc compression 

methodology and on which a daily automatic compression cycle will be run by LCH SA, in each 

case in accordance with Chapter 3 (Compression) of Title III (Clearing Operations) of the CDS 

Clearing Rule Book and Section 5 of the Procedures, being:

(a) in respect of any Index Cleared Transaction, the date falling one Transaction Business 

Day prior to the Novation Cut-off Date in respect of the relevant Eligible Index Version;

(b) in respect of any Single Name Cleared Transaction and:

(i) a Restructuring Credit Event, the earlier of (A) the date of publication of the 

relevant Initial List (as defined in the DC Rules), (B) the date falling two 

Transaction Business Days prior to the relevant date on which the related RMP 

Notification Deadline falls and (C) such other date falling between the dates in 

(A) and (B), as determined by LCH SA in consultation with the CDSClear Product 

Committee and notified to the relevant Clearing Members prior to such date; 

and

(ii) a Failure to Pay Credit Event or a Bankruptcy Credit Event, the date falling one 

Transaction Business Day prior to the calendar day following the related 

Auction Final Price Determination Date, Auction Cancellation Date or No 

Auction Announcement Date; 

(iii) a Succession Event, a date determined by LCH SA in consultation with the 

CDSClear Product Committee, which shall be not later that the Transaction 

Business Day before the date on which DTCC will amend its records in respect 

of such Single Name Cleared Transaction to take into account the occurrence 

of such Succession Event, and notified to the relevant Clearing Members prior 

to such date; and

(iv) a Rename Event, the Transaction Business Day before the date on which DTCC 

will amend its records in respect of Single Name Cleared Transactions to take 

into account the occurrence of such Rename Event.

For the avoidance of doubt, where a Clearing Member has specified automatic compression 

on a weekly basis then the last such weekly automatic compression cycle performed by LCH 

SA will be performed on the Clearing Day falling on the Thursday on or before the relevant 

Compression Cut-off Date.
LCH SA © 2021 37 Published on 30 July 2021[●]

DC Restructuring Announcement Date: The date on which the DC Credit Event 

Announcement of a Restructuring Credit Event is made, provided that where such DC Credit 

Event Announcement is made after 6.30 p.m. on a Business Day or on a day which is not a 

Business Day, the DC Restructuring Announcement Date will be the first following Business 

Day.

DC Rules: This term shall have the meaning given to the term "Rules" in the 2003 ISDA Credit 

Derivatives Definitions.

DC Secretary: This term shall have the meaning set out in the DC Rules.

Deemed Buy-in Period: As set out at Section 6.8(b)(i). 

Dispute: This term shall have the meaning set out in the CDS Dispute Resolution Protocol.

DTCC Failure Event: As set out at Section 7.4 (Notification of DTCC Failure and Resolution). 

DTCC Failure Event Time: As set out at Section 7.4 (Notification of DTCC Failure and 

Resolution).

DTCC Notice Facility: A facility made available pursuant to the DTCC Rules for the delivery of 

Credit Event Notices relating to Restructuring Credit Events or Notices to Exercise Movement 

Option.

DTCC Resolution Time: As set out at Section 7.4 (Notification of DTCC Failure and Resolution).

DTCC Rules: The "Operating Procedures", as published by DTCC and as amended from time 

to time.

Failed Amount: As set out at Section 6.10 (Failure to pay Physical Settlement Amount). 

First Novation Date: In respect of: 

(a) an Index Cleared Transaction, the first date on which LCH SA will accept Original 

Transactions referencing the relevant Eligible Index Version for clearing pursuant to 

the CDS Clearing Documentation, being, in the case of any such version published 

pursuant to the occurrence of a Succession Event or Credit Event, the date on which 

credit default swap transactions referencing such version of such index are accepted 

for registration in the TIW in accordance with the DTCC Rules; 

(b) a Single Name Cleared Transaction in respect of which a Novation Cut-off Date has 

previously occurred pursuant to the occurrence of a Restructuring Credit Event in 

respect of the relevant Reference Entity, the calendar day following the Transaction 

Business Day following the latest possible Exercise Cut-off Date for the relevant 

Restructuring Credit Event or such other date on which LCH SA determines in 

consultation with the CDSClear Product Committee that LCH SA will begin to again 

accept Original Transactions referencing the relevant Reference Entity; and
LCH SA © 2021 38 Published on 30 July 2021[●]

(c) a Single Name Cleared Transaction (other than in the circumstances set-out in (b)

above), the first date on which LCH SA determines in consultation with the CDSClear 

Product Committee that LCH SA will accept or will begin to again accept (as applicable) 

Original Transactions referencing the relevant Reference Entity.

Index Cleared Transaction: A Cleared Transaction which references a portfolio of Reference 

Entities specified in a credit default swap index and consists of a Component Transaction (as 

defined in the Index Cleared Transaction Confirmation) in respect of each such Reference 

Entity, the terms of which are as evidenced by an Index Cleared Transaction Confirmation.

Index Cleared Transaction Confirmation: For

(a) any Index Cleared Transaction which references a Markit iTraxx® Europe Index Series 

21 or below, the form of confirmation which incorporates the iTraxx® Europe Legacy 

Untranched Standard Terms Supplement, each as published on 20 September 2014 by 

Markit Group Limited; and

(b) any Index Cleared Transaction which references a Markit CDXTM Index Series 22 or 

below, the form of confirmation which incorporates the CDX Legacy Untranched 

Transactions Standard Terms Supplement, each as published on 22 September 2014 

by Markit Group Limited, 

in each case as amended by this CDS Clearing Supplement and as completed by reference to 

the relevant Transaction Data (or such other form of confirmation as may be adopted in 

respect of any CDS Type in accordance with Section 1.2.2 (Modification) of the CDS Clearing 

Rule Book). 

Index CCM Client Transaction: A CCM Client Transaction which references a portfolio of 

Reference Entities specified in a credit default swap index and consists of a Component 

Transaction (as defined in the Index Cleared Transaction Confirmation) in respect of each 

such Reference Entity and which is on the same economic terms as an Index Cleared 

Transaction registered in the CCM Client Trade Account in the name of such CCM for such 

CCM Client.

Initial Re-couponing Notice: As set-out in Section 4.4 (Re-couponing of Restructuring Cleared 

Transactions).

Initial Single Name Cleared Transaction: A Cleared Transaction entered into following the 

novation of an Original Transaction and which references a single Reference Entity, the terms 

of which are evidenced by a Single Name Cleared Transaction Confirmation. 

Initial Single Name CCM Client Transaction: A CCM Client Transaction which references a 

single Reference Entity and which is on the same economic terms as an Initial Single Name 

Cleared Transaction registered in the CCM Client Trade Account in the name of such CCM for 

such CCM Client.

ISDA: The International Swaps and Derivatives Association, Inc. and any successor thereto.
LCH SA © 2021 39 Published on 30 July 2021[●]

Mandatory Provisions: As set-out in Appendix XIII (CCM Client Transaction Requirements).

Matched Buyer: A CDS Buyer comprised in a Matched Pair. 

Matched Buyer Contract: A Cleared Transaction (or part thereof) between a Matched Buyer 

and LCH SA which is the subject of a Matched Pair having the Restructuring Matched Pair 

Amount or the Settlement Matched Pair Delivery Amount, as the case may be, relating to 

that Matched Pair.

Matched Contract: A Matched Seller Contract or a Matched Buyer Contract, as applicable.

Matched Pair: A Restructuring Matched Pair or Settlement Matched Pair, as applicable.

Matched Seller: A CDS Seller comprised in a Matched Pair. 

Matched Seller Contract: A Cleared Transaction (or part thereof) between a Matched Seller 

and LCH SA which is the subject of a Matched Pair having the Restructuring Matched Pair 

Amount or the Settlement Matched Pair Delivery Amount, as the case may be, relating to 

that Matched Pair.

Matching Information Notification Deadline: In respect of a Restructuring Cleared 

Transaction, 9.00 a.m. on the first day of the CEN Triggering Period, provided that the 

Matching Information Notification Deadline shall fall no earlier than the fifth Transaction 

Business Day following the relevant DC Credit Event Announcement.

Matrix Re-versioning Date: As set-out in Section 2.5 (Physical Settlement Matrix Updates).

NEMO Triggering Period: In relation to any Restructuring Cleared Transaction for which 

either "Restructuring Maturity Limitation and Fully Transferable Obligation Applicable" or 

"Modified Restructuring Maturity Limitation and Conditionally Transferable Obligation 

Applicable" is applicable, the period starting at 9:00 a.m. on the day falling two Transaction 

Business Days prior to the relevant Movement Option Cut-off Date for the relevant Credit 

Event and ending at the last time for delivery of a valid Notice to Exercise Movement Option 

under the terms of the relevant Cleared Transaction.

No Physical Settlement Confirmation: As set out in Section 6.19 (Miscellaneous Provisions 

relating to Physical Settlement).

No Physical Settlement Confirmation Deadline: As set out in Section 6.19 (Miscellaneous 

Provisions relating to Physical Settlement).

Non-Deliverable Obligation: As set out at Section 6.12 (Fallback to Cash Settlement in respect 

of Non-Deliverable Obligations).

Non-DVP Obligation: In respect of any Physically Settled Cleared Transaction, a Deliverable 

Obligation validly specified in a Notice of Physical Settlement which does not, in accordance 

with then current market standards, settle on a delivery-versus-payment basis through the

books and records of a central securities depository or securities settlement system.
LCH SA © 2021 40 Published on 30 July 2021[●]

Notice Acknowledgement Deadline: As set out in Section 7.7 (Clearing Member 

Acknowledgements).

Notice Reconciliation Deadline: As set out in Section 7.7 (Clearing Member 

Acknowledgements).

Novation Cut-off Date: The date with effect from which LCH SA will no longer accept Original 

Transactions referencing an Eligible Index Version or Eligible Reference Entity for novation, 

being:

(a) following the occurrence of a Restructuring Credit Event, the earlier of: 

(i) a date determined by LCH SA in consultation with the CDSClear Product 

Committee, which shall not be earlier than the DC Restructuring 

Announcement Date; and

(ii) the calendar day immediately following the No Auction Announcement Date,

provided that LCH SA in consultation with the CDSClear Product Committee may, but 

is not required to, determine that the Novation Cut-off Date for Index Cleared 

Transactions and the Novation Cut-off Date for Initial Single Name Cleared 

Transactions are to occur on different days;

(b) following the occurrence of a Failure to Pay Credit Event or a Bankruptcy Credit Event, 

the calendar day following the related Auction Final Price Determination Date, Auction 

Cancellation Date or No Auction Announcement Date, as applicable; 

(c) following the occurrence of a Succession Event: 

(i) in respect of an Index Cleared Transaction, the date notified by DTCC to LCH SA 

as being the date on which DTCC will amend its records in respect of such 

Cleared Transaction to take into account a new version of such index published 

by the relevant index publisher taking into account the occurrence of such 

Succession Event; or

(ii) in respect of a Single Name Cleared Transaction, the day after the date on 

which ISDA publicly announces that the relevant Determinations Committee 

has resolved that a Succession Event has occurred; 

(d) following the occurrence of a Rename Event in respect of Single Name Cleared 

Transactions, the date determined by LCH SA in consultation with the CDSClear 

Product Committee, which such date shall not be later than the date on which DTCC 

amends its records in respect of Single Name Cleared Transactions to take into account

the occurrence of such Rename Event; or

(e) otherwise, as determined by LCH SA in consultation with the CDSClear Product 

Committee. 
LCH SA © 2021 41 Published on 30 July 2021[●]

Partial Cash Settlement Terms: As set out in Section 9.8 (Partial Cash Settlement Terms) of 

the 2003 ISDA Credit Derivatives Definitions, as amended by this CDS Clearing Supplement. 

Payer: As set out at Section 6.17 (Physical Settlement Costs). 

Physical Settlement Confirmation: As set out in Section 6.19 (Miscellaneous Provisions 

relating to Physical Settlement).

Physical Settlement Confirmation Deadline: As set out in Section 6.19 (Miscellaneous 

Provisions relating to Physical Settlement).

Physically Settled Cleared Transaction: As set out at Section 6.3 (Physically Settled Cleared 

Transactions).

Physical Settlement Matrix: The Credit Derivatives Physical Settlement Matrix (as defined in 

the 2005 Matrix Supplement to the 2003 ISDA Credit Derivatives Definitions published on 

March 7 2005).

Recipient: As set out at Section 6.17 (Physical Settlement Costs). 

Re-couponing Date: As set-out in Section 4.4 (Re-couponing of Restructuring Cleared 

Transactions).

Re-couponing Notice: As set-out in Section 4.4 (Re-couponing of Restructuring Cleared 

Transactions).

Rename Event: As set out in Section 4.7 (Rename Events).

Restructuring Cleared Transaction: A Cleared Transaction which references a single 

Reference Entity and is created following the creation of Restructuring Matched Pairs 

pursuant to Section 5.2 (Creation of Restructuring Cleared Transactions), the terms of which 

are evidenced by a Single Name Cleared Transaction Confirmation. 

Restructuring CCM Client Transaction: A CCM Client Transaction between a CCM and a CCM 

Client which references a single Reference Entity and which is on the same economic terms 

as a Restructuring Cleared Transaction registered in the CCM Client Trade Account in the 

name of such CCM for such CCM Client.

Restructuring Matched Pair: A pairing comprised of a Matched Buyer and a Matched Seller 

in respect of Restructuring Cleared Transactions created by LCH SA for the purposes of 

delivery of Credit Event Notices in respect of the relevant Restructuring Credit Event under 

Section 5.1 (Creation and Notification of Restructuring Matched Pairs).

Restructuring Matched Pair Amount: In respect of a Restructuring Matched Pair, the amount 

of the Floating Rate Payer Calculation Amount in respect of the relevant Restructuring 

Cleared Transactions allocated by LCH SA to such Restructuring Matched Pair under Section 

8.1 (Creation of Matched Pairs).
LCH SA © 2021 42 Published on 30 July 2021[●]

Resulting Single Name Cleared Transaction: A Cleared Transaction which references a single 

Reference Entity and is created following the termination of a Restructuring Cleared 

Transaction pursuant to Section 5.15 (Recouponing) of the Procedures, the terms of which 

are evidenced by a Single Name Cleared Transaction Confirmation.

RMP Notification Deadline: In respect of a notification by LCH SA to the relevant Clearing 

Members in relation to Restructuring Matched Pairs, 10.00 a.m. on the Transaction Business 

Day immediately prior to the first day of the CEN Triggering Period provided that the RMP 

Notification Deadline shall in no event fall prior to the second Transaction Business Day 

following the occurrence of the related DC Credit Event Announcement.

Self Referencing Transaction: A Clearing Member Self Referencing Transaction or a Client Self 

Referencing Transaction, as applicable.

Settlement Matched Pair: A pairing comprised of a Matched Buyer and a Matched Seller in 

respect of Physically Settled Cleared Transactions deemed to have been created by LCH SA 

under Section 6.2 (Creation and Notification of Settlement Matched Pairs).

Settlement Matched Pair Delivery Amount: In respect of a Settlement Matched Pair, the 

amount of the Floating Rate Payer Calculation Amount in respect of the relevant Physically 

Settled Cleared Transactions allocated by LCH SA to such Settlement Matched Pair under 

Section 8.1 (Creation of Matched Pairs).

Single Name Cleared Transaction: An Initial Single Name Cleared Transaction, a Spin-off 

Single Name Cleared Transaction, a Restructuring Cleared Transaction and a Resulting Single 

Name Cleared Transaction. 

Single Name Cleared Transaction Confirmation: The form of confirmation for use with the 

Physical Settlement Matrix that incorporates the 2003 ISDA Credit Derivatives Definitions, as 

amended by this CDS Clearing Supplement and as completed by reference to: 

(a) in the case of an Initial Single Name Cleared Transaction, the relevant Transaction 

Data; or 

(b) in the case of any other type of Single Name Cleared Transaction, the relevant Cleared 

Transaction or Cleared Transactions that existed immediately prior to the relevant 

event that resulted in the creation of such Single Name Cleared Transaction (with such 

amendments as are required pursuant to the terms of the CDS Clearing 

Documentation),

or such other form of confirmation as may be adopted in respect of any CDS Type in 

accordance with Section 1.2.2 (Modification) of the CDS Clearing Rule Book.

Single Name CCM Client Transaction: A CCM Client Transaction between a CCM and a CCM 

Client which is on the same economic terms as a Single Name Cleared Transaction registered 

in the CCM Client Trade Account in the name of such CCM for such CCM Client.
LCH SA © 2021 43 Published on 30 July 2021[●]

SMP Notification Deadline: In respect of a notification by LCH SA to the relevant Clearing 

Members in relation to Settlement Matched Pairs, noon on the Transaction Business Day 

following the day on which the Fallback Settlement Method first becomes applicable.

Spin-off Single Name Cleared Transaction: The separate Single Name Cleared Transaction 

formed in respect of a Reference Entity from a Component Transaction (as defined in the 

Index Cleared Transaction Confirmation) of an Index Cleared Transaction following the 

occurrence of a DC Credit Event Announcement in respect of a Restructuring Credit Event 

with respect to the Reference Entity of such Component Transaction in accordance with the 

terms of such Index Cleared Transaction, the terms of which are evidenced by a Single Name 

Cleared Transaction Confirmation.

Transaction Business Day: A "Business Day", as defined in the Index Cleared Transaction 

Confirmation or the Single Name Cleared Transaction Confirmation, as applicable. 

Transaction Data: In respect of an Original Transaction to be novated pursuant to Title III 

(Clearing Operations) of the CDS Clearing Rule Book and cleared by LCH SA as an Index Cleared 

Transaction or Initial Single Name Cleared Transaction, the data provided by an Approved 

Trade Source System to LCH SA for such purposes, which includes, without limitation:

(a) in respect of an Index Cleared Transaction, the relevant index, including details of the 

index name, series and version, the annex date, the Original Notional Amount and the 

currency of the Original Notional Amount; 

(b) in respect of an Initial Single Name Cleared Transaction, the Reference Entity, 

Reference Obligation, applicable Transaction Type, Floating Rate Payer Calculation 

Amount, the currency of the Floating Rate Payer Calculation Amount and the Fixed 

Rate;

(c) the Trade Date;

(d) the Scheduled Termination Date;

(e) the Floating Rate Payer;

(f) the Fixed Rate Payer;

(g) the Fixed Rate Payer Payment Dates;

(h) the Initial Payment Payer; 

(i) the Initial Payment Amount; and

(j) whether the 2003 Credit Derivatives Definitions or the 2014 Credit Derivatives 

Definitions are applicable to such Original Transaction (or, in the case of an Index 

Cleared Transaction, each component of such Original Transaction).
LCH SA © 2021 44 Published on 30 July 2021[●]

1.3 Inconsistency

To the extent of any conflict between: 

(a) any definition or provision contained in Appendix 1 (CDS Default Management 

Process) of the CDS Clearing Rule Book; 

(b) the remaining sections of the CDS Clearing Rule Book; 

(c) the CDS Admission Agreement; 

(d) this CDS Clearing Supplement; 

(e) an Index Cleared Transaction Confirmation or a Single Name Cleared Transaction 

Confirmation; 

(f) the Procedures; or 

(g) any Clearing Notices, 

the first referenced document shall prevail except in relation to determining the existence 

and amount of any payment and delivery obligations under any Cleared Transactions, in 

respect of which this CDS Clearing Supplement, the Index Cleared Transaction Confirmation 

or the Single Name Cleared Transaction Confirmation, as applicable, shall prevail to the extent 

permitted by law.

1.4 Timing

Pursuant to Article 1.2.8 (Time reference) of the CDS Clearing Rule Book, any reference to a 

time of day herein shall be deemed to be a reference to Central European Time unless 

otherwise provided herein.

1.5 Third Party Rights

Unless otherwise provided in this CDS Clearing Supplement or in the CDS Clearing Rulebook, 

a person who is not a party to a Cleared Transaction does not have any right under the 

Contracts (Rights of Third Parties) Act 1999 to enforce any provision of such Cleared 

Transaction or this CDS Clearing Supplement as it relates to such Cleared Transaction.

1.6 Recording of Conversations

Each of LCH SA and each Clearing Member consents to the recording of telephone 

conversations between the trading, marketing and other relevant personnel of the parties in 

connection with any Cleared Transaction and agrees to obtain any necessary consent of, and 

give any necessary notice of such recording to, its relevant personnel and agrees, to the 

extent permitted by applicable law, that such recordings may be submitted as evidence in 

any related court or arbitral proceedings. 
LCH SA © 2021 45 Published on 30 July 2021[●]

1.7 Application to FCM/BD Clearing Members

(a) Upon the taking of any action pursuant to this CDS Clearing Supplement by an 

FCM/BD Clearing Member in respect of an FCM/BD Cleared Transaction entered into 

as agent for the account of an FCM/BD Client (as described in FCM/BD CDS Clearing 

Regulation 1(c)), such FCM/BD Clearing Member shall be deemed to represent to LCH 

SA that it has the power and authority to, and has been duly authorised to, take such 

action for the account of such FCM/BD Client.

(b) For purposes of this CDS Clearing Supplement, with regard to any Cleared Transaction 

entered into by an FCM/BD Clearing Member acting as agent for the account of an 

FCM/BD Client (as described in FCM/BD CDS Clearing Regulation 1(c)):

(i) references herein to “CDS Buyer” or “CDS Seller”, as the case may be, shall be 

understood to be references to such FCM/BD Client (which shall not, for the 

avoidance of doubt, prejudice LCH SA’s right to deal solely with the FCM/BD

Clearing Member pursuant to Article 6.1.1.3(vi) of the CDS Clearing Rule Book); 

and

(ii) references herein to: (1) a Clearing Member entering into a Cleared Transaction 

with LCH SA; and (2) a Clearing Member forming part of a Matched Pair, shall 

each be understood as such FCM/BD Clearing Member acting as agent for the 

account of such FCM/BD Client (as described in FCM/BD CDS Clearing 

Regulation 1(c)).

2. TERMS OF CLEARED TRANSACTIONS

2.1 General Terms of Cleared Transactions 

(a) Terms of Index Cleared Transactions and Initial Single Name Cleared Transactions

Upon novation of an Original Transaction at the Novation Time in accordance with 

Title III (Clearing Operations) of the CDS Clearing Rule Book, each resulting Index 

Cleared Transaction or Initial Single Name Cleared Transaction is entered into by LCH 

SA and the relevant Clearing Member on the terms of the related Index Cleared 

Transaction Confirmation or Single Name Cleared Transaction Confirmation (as 

applicable).

(b) Terms of Spin-off Single Name Cleared Transactions, Restructuring Cleared 

Transactions and Resulting Single Name Cleared Transactions

If any Spin-off Single Name Cleared Transaction is deemed to have been entered into 

by the parties in accordance with the terms of any Index Cleared Transaction or if any 

Restructuring Cleared Transaction is created pursuant to Section 5.2 (Creation of 

Restructuring Cleared Transactions) or if any Resulting Single Name Cleared 

Transaction is created pursuant to Section 5.15 (Recouponing) of the Procedures, such 

Spin-off Single Name Cleared Transaction, Restructuring Cleared Transaction or 

Resulting Single Name Cleared Transaction is entered into by LCH SA and the relevant 
LCH SA © 2021 46 Published on 30 July 2021[●]

Clearing Member on the terms of the related Single Name Cleared Transaction 

Confirmation.

(c) Trade Date of Cleared Transactions following Compression

Notwithstanding paragraphs (a) and (b) above, where Cleared Transactions are subject 

to compression in accordance with Chapter 3 (Compression) of Title III (Clearing 

Operations) of the CDS Clearing Rule Book, the Trade Date of any resulting Cleared 

Transaction(s) shall be, in respect of any Cleared Transaction subject to:

(i) ad hoc compression (as described in Chapter 3 (Compression) of Title III 

(Clearing Operations) of the CDS Clearing Rule Book), the date on which the 

request for compression was effectively received and processed in accordance 

with Section 5 of the Procedures, which shall be: 

(A) the Clearing Day on which such request is submitted and uploaded by 

the relevant Clearing Member provided that such request for 

compression was received by LCH SA before 7.00 p.m. on such Clearing 

Day (if such request is submitted and uploaded by the relevant Clearing 

member via any means of access specified in a Clearing Notice or 5.00 

p.m. (if such request is not submitted via any means of access specified 

in a Clearing Notice in the case of a disruption of the relevant means of 

access); 

(B) the Clearing Day on which such request is submitted if such request is 

not submitted via any means of access specified in a Clearing Notice in 

the case of disruption of the relevant means of access and is submitted 

after 5.00 p.m. but LCH SA, in its sole discretion, processes such request 

on the Clearing Day on which such request is submitted; and 

(C) unless the relevant Clearing Member instructs the Operations 

Department to withdraw such request, the Clearing Day following the 

Clearing Day on which such request is submitted if such request is not 

submitted via any means of access specified in a Clearing Notice in the 

case of disruption of the relevant means of access and is submitted after 

5.00 p.m. and LCH SA, in its sole discretion, does not process such 

request on the Clearing Day on which such request is submitted; or

(ii) automatic compression (as described in Chapter 3 (Compression) of Title III 

(Clearing Operations) of the CDS Clearing Rule Book), the Clearing Day on which 

such Cleared Transaction is automatically compressed by LCH SA in accordance 

with Section 5 of the Procedures.
LCH SA © 2021 47 Published on 30 July 2021[●]

2.2 Index Cleared Transaction Confirmation

The Index Cleared Transaction Confirmation is amended, supplemented and completed as 

follows:

(d) (i) if the Index Cleared Transaction references a Markit iTraxx® Europe Index, by 

deleting the words "between [⚫] (Party A) and [⚫] (Party B)" in the third line of the 

first paragraph; and 

(ii) if the Index Cleared Transaction references a Markit CDXTM Index, by deleting the 

words "between [Party A] ("Party A") and [counterparty's name] ("Party B")" in the 

third and fourth lines of the first paragraph,

and in each case replacing them with:

"between LCH SA ("Party A") and Clearing Member, as identified in the relevant CDS 

Admission Agreement between such Clearing Member and Party A ("Party B")";

(e) (i) if the Index Cleared Transaction references a Markit iTraxx® Europe Index, by 

deleting the fifth paragraph thereof; and 

(ii) if the Index Cleared Transaction references a Markit CDXTM Index, by deleting the 

third paragraph thereof,

in each case replacing it with the following: 

"This Confirmation supplements, forms a part of, and is subject to, the CDS Clearing 

Documentation, as defined in the CDS Clearing Rule Book.";

(f) if the Index Cleared Transaction references a Markit iTraxx® Europe Index, by deleting 

the sixth paragraph thereof and replacing it with the following: 

"The terms of the iTraxx® Master Transaction, which is an Index Cleared Transaction, 

to which this Confirmation relates are as follows:";

(g) if the Index Cleared Transaction references a Markit CDXTM Index, by deleting the 

fourth paragraph thereof and replacing it with the following:

"The terms of the Master Transaction, which is an Index Cleared Transaction, to 

which this Confirmation relates are as follows:";

(h) by specifying that the “Calculation Agent” is Party A;

(i) (i) if the Index Cleared Transaction references a Markit iTraxx® Europe Index, by 

inserting the following “Additional terms”: 

"The Legacy Standard Terms Supplement is amended for the purposes of this 

Transaction by deleting paragraph 5.4 (De Minimis Cash Settlement) of Section A in 

its entirety": and
LCH SA © 2021 48 Published on 30 July 2021[●]

(ii) if the Index Cleared Transaction references a Markit CDXTM Index, by inserting the 

following “Additional terms”: 

"The CDX Legacy Standard Terms Supplement is amended for the purposes of this 

Transaction by deleting paragraph 5.3 (De Minimis Cash Settlement) of Section A in 

its entirety": 

(j) by deleting the contact details for notices and the account details; and

(k) by deleting the signature blocks.

2.3 Single Name Cleared Transaction Confirmation

The Single Name Cleared Transaction Confirmation is amended, supplemented and 

completed as follows:

(a) by deleting the words "between us" from the first paragraph thereof and replacing 

them with:

"between LCH SA ("Party A") and Clearing Member, as identified in the relevant CDS 

Admission Agreement between Clearing Member and Party A ("Party B")";

(b) by deleting the words "as supplemented by each of the May 2003 Supplement and 

the 2005 Matrix Supplement to the 2003 ISDA Credit Derivatives Definitions" in the 

second paragraph thereof and replacing them with the words "as supplemented by 

each of the 2005 Matrix Supplement to the 2003 ISDA Credit Derivatives Definitions 

and the 2009 ISDA Credit Derivatives Determinations Committees, Auction 

Settlement and Restructuring Supplement to the 2003 ISDA Credit Derivatives 

Definitions (published on July 14, 2009)";

(c) by deleting the third paragraph thereof and replacing it with the following:

"This Confirmation supplements, forms a part of and is subject to the CDS Clearing 

Documentation, as defined in the CDS Clearing Rule Book.";

(d) by specifying the Matrix Publication Date as the date of publication of the Relevant 

Physical Settlement Matrix; 

(e) by specifying that the “Calculation Agent” is Party A;

(f) notwithstanding the terms of the relevant Original Transaction, by specifying that 

the Reference Obligation is the CDSClear Preferred Reference Obligation;

(g) by deleting references to the Initial Payment Payer and the Initial Payment Amount 

in part 2 in relation to Single Name Cleared Transactions in respect of which there is 

no Initial Payment Payer and Initial Payment Amount;

(h) by deleting parts 4, 5, 6 and 7 in their entirety;
LCH SA © 2021 49 Published on 30 July 2021[●]

(i) by inserting the following provision in the "Additional Terms" section of the 

Confirmation:

"Section 2.31 (Merger of Reference Entity and Seller) of the Credit Derivatives 

Definitions shall not apply."; and

(j) by deleting the signature blocks.

2.4 Amendments to 2003 ISDA Credit Derivatives Definitions

(a) For the purposes of this CDS Clearing Supplement, Section 9.2(c)(iv) of the 2003 ISDA 

Credit Derivatives Definitions as incorporated in any Cleared Transaction shall be 

amended such that, where LCH SA is the designator in relation to any Restructuring 

Cleared Transaction or Physically Settled Cleared Transaction, as applicable, it is 

permitted to designate any relevant CDS Buyer or CDS Seller, as applicable, in 

accordance with Section 8 (Matched Pair Designations and Notices) as its designee, 

notwithstanding that such relevant CDS Buyer or CDS Seller, as applicable, is not its 

Affiliate and for the additional purposes of:

(i) delivering or receiving any Credit Event Notice relating to a Restructuring Credit 

Event or Notice to Exercise Movement Option (in each case, to the extent not 

delivered via a DTCC Notice Facility);

(ii) delivering or receiving any Notice of Physical Settlement or NOPS Amendment 

Notice; 

(iii) making or receiving payment of any Physical Settlement Amount and any costs 

and expenses of Physical Settlement; and

(iv) delivering or receiving any notice and otherwise exercising any rights or

performing any obligations of LCH SA for the purposes of Sections 9.9 (Buy-in 

of Bonds Not Delivered) or 9.10 (Alternative Procedures Relating to Loans Not 

Delivered) of the 2003 ISDA Credit Derivatives Definitions.

(b) Section 9.1(c)(iii) of the 2003 ISDA Credit Derivatives Definitions is amended by 

deleting both occurrences of the words "master agreement between Buyer and Seller 

that governs the relevant Credit Derivative Transaction" and replacing each with the 

words "CDS Clearing Documentation". 

(c) Section 9.2(a) of the 2003 ISDA Credit Derivatives Definitions is amended by deleting 

the words "any master agreement governing the Credit Derivative Transaction" at the 

end thereof and replacing them with the words "the CDS Clearing Documentation".

(d) Section 9.2(c)(ii) of the 2003 ISDA Credit Derivatives Definitions is amended by 

deleting the words "any master agreement governing the Credit Derivative 

Transaction" at the end of the third sentence thereof and replacing them with the 

words "the CDS Clearing Documentation".
LCH SA © 2021 50 Published on 30 July 2021[●]

(e) Section 9.2(c)(iii) of the 2003 ISDA Credit Derivatives Definitions is amended by 

deleting both occurrences of the words "a master agreement governing the Credit 

Derivative Transaction" and replacing each with the words "the CDS Clearing 

Documentation".

(f) The Protocol Effectiveness Condition (as defined in the 2014 ISDA Credit Derivatives 

Definitions Protocol published by ISDA on 21 August 2014 and supplemented by the 

Supplement thereto published by ISDA on 15 September 2014 and as further 

supplemented from time to time (the "2014 Protocol")) being satisfied, then from 

and including the Implementation Date (as defined in the 2014 Protocol) the 

amendments set forth in Part 1 (Global Amendments) of Schedule 1 (Amendments to 

Protocol Covered Transactions) of the 2014 Protocol shall apply to each Cleared 

Transaction which incorporates the 2003 ISDA Credit Derivatives Definitions and each 

such Cleared Transaction shall be a Protocol Covered Transaction for the purposes of 

the 2014 Protocol provided that:

(i) the First Novation Date in respect of such Cleared Transaction is prior to the 

Implementation Date;

(ii) such Cleared Transaction is not an Excluded Transaction (as defined in the 2014 

Protocol) provided that if such Cleared Transaction relates to more than one

Reference Entity and would otherwise be a Protocol Covered Transaction but 

for the inclusion of any Affected Portion (as defined in the 2014 Protocol) 

therein, such Affected Portion shall be excluded for the purposes of this Section 

2.4(f) and the remaining portion of such Cleared Transaction shall be deemed 

to be a Protocol Covered Transaction;

(iii) the Scheduled Termination Date in respect of such Cleared Transaction is on or 

after the Implementation Date;

(iv) no Event Determination Date has occurred in respect of such Cleared 

Transaction prior to the Implementation Date;

(v) from and including the Implementation Date the provisions of Part B of the CDS 

Clearing Supplement shall apply to such Cleared Transaction or the portion of 

such Cleared Transaction other than the Affected Portion, as applicable and 

such Cleared Transaction shall be treated as if it had been entered into and is 

subject to the 2014 ISDA Credit Derivatives Definitions. In the event of any 

inconsistency between the provisions of Part B of the CDS Clearing Supplement 

and the amendments set forth in this paragraph 2.4, the provisions of Part B of 

the CDS Clearing Supplement shall prevail.

2.5 Physical Settlement Matrix Updates

(a) Publication of Revised Matrix

Where ISDA publishes a new version (the "Revised Matrix") of the Physical Settlement 

Matrix that is the Relevant Physical Settlement Matrix in respect of an Eligible 
LCH SA © 2021 51 Published on 30 July 2021[●]

Reference Entity (the "Existing Matrix"), LCH SA will, in consultation with the CDSClear 

Product Committee, determine whether the Existing Matrix and the Revised Matrix 

are fungible for the purposes of Single Name Cleared Transactions referencing such 

Eligible Reference Entity. 

If there are any changes between the terms of the Revised Matrix and the Existing 

Matrix that would apply to Single Name Cleared Transactions referencing the Eligible 

Reference Entity and the Existing Matrix were they to reference the Revised Matrix 

instead, then the Existing Matrix and the Revised Matrix shall be deemed not to be 

fungible and paragraph (c) below shall apply.

(b) Revised Matrix Fungible

If LCH SA determines in consultation with the CDSClear Product Committee that the 

Existing Matrix and the Revised Matrix are fungible for the purposes of Single Name 

Cleared Transactions referencing an Eligible Reference Entity (such date of 

determination, a Matrix Re-versioning Date), then:

(i) LCH SA will promptly notify all Clearing Members of such determination; and

(ii) each Single Name Cleared Transaction referencing such Eligible Reference 

Entity and the Existing Matrix will, as of the close of business on the Matrix Reversioning Date, be deemed to have been amended so as to reference the 

Revised Matrix, which shall become the Relevant Physical Settlement Matrix in 

respect of such Eligible Reference Entity. 

For the avoidance of doubt, following the publication of a Revised Matrix, there may 

be different Matrix Re-versioning Dates in respect of Single Name Cleared 

Transactions referencing different Eligible Reference Entities.

(c) Revised Matrix not Fungible

If it is determined that the Revised Matrix and the Existing Matrix are not fungible for 

the purposes of Single Name Cleared Transactions referencing an Eligible Reference 

Entity, then existing Single Name Cleared Transactions referencing such Eligible 

Reference Entity and the Existing Matrix shall continue to reference the Existing 

Matrix.

(d) Original Transactions submitted prior to Matrix Re-versioning Date

Pursuant to Section 2.3(d) above, any Original Transaction referencing an Eligible 

Reference Entity submitted for clearing after a Matrix Re-versioning Date in respect of 

such Eligible Reference Entity and which references the Existing Matrix prior to such 

Matrix Re-versioning Date will, following novation, result in an Initial Single Name 

Cleared Transaction referencing the Revised Matrix.
LCH SA © 2021 52 Published on 30 July 2021[●]

2.6 Terms of STM Cleared Transaction

The following terms of a registered STM Cleared Transaction are designated as the 

“STM Cleared Terms”.

If a Cleared Transaction is designated as an STM Cleared Transaction in accordance 

with Article 3.1.10.7 of the CDS Clearing Rule Book the terms of such Cleared 

Transaction will automatically, and without any further action by either party, include 

the STM Cleared Terms. 

(a) Net present value

(i) LCH SA shall, at least once per Cash Payment Day, determine the net present 

value of this STM Cleared Transaction in such manner and at such times as may 

be provided in Section 2 of the Procedures. 

(ii) Immediately upon LCH SA making such a determination of the net present 

value of this STM Cleared Transaction: 

(A) An amount (determined in accordance with Section 2.14 (NPV Amount) 

of the Procedures) of cash may become due and payable by the Clearing 

Member or LCH SA (as applicable, and as determined in accordance with 

Section 2.14 (NPV Amount) of the Procedures) under these STM Cleared 

Terms; and 

(B) the net present value of this STM Cleared Transaction shall for all 

purposes be reset to zero. 

(iii) The amount (if any) referred to in (ii)(A) above shall immediately become due 

and payable by the relevant party under the STM Cleared Terms applicable to 

this STM Cleared Transaction and shall be made in such manner and at such 

times as may be provided in Section 2 of the Procedures.

(iv) In any circumstance preventing the NPV Payments or Variation Margin 

Collateral Transfers from being performed in US Dollar, LCH SA shall be entitled 

to convert any amount denominated in US Dollar into Euro in accordance with 

Article 4.2.3.2 of the CDS Clearing Rule Book. 

(b) Price Alignment Amount 

(i) LCH SA shall, at least once per Cash Payment Day, determine the Price 

Alignment Amount in respect of this STM Cleared Transaction in such manner 

and at such times as may be provided in Section 2 of the Procedures. 

(ii) Immediately upon LCH SA making such a determination of the Price Alignment 

Amount in respect of this STM Cleared Transaction, an amount (determined in 

accordance with Section 2.17 (Price Alignment Amount) of the Procedures) of 

cash may become due and payable by the Clearing Member or LCH SA (as 
LCH SA © 2021 53 Published on 30 July 2021[●]

applicable, and as determined in accordance with Section 2.17 (Price Alignment 

Amount) of the Procedures) under these STM Cleared Terms. 

(iii) The amount (if any) referred to in (ii) above shall immediately become due and 

payable by the relevant party under the STM Cleared Terms applicable to this 

STM Cleared Transaction and shall be made in such manner and at such times 

as may be provided in Section 2 of the Procedures.

3. PAYMENTS AND DELIVERIES

3.1 Obligation to pay and deliver

Each of LCH SA and each Clearing Member will make each payment or delivery specified 

under the terms of each Cleared Transaction to be made by it, subject to the other provisions 

of the CDS Clearing Documentation. 

Payments under any Cleared Transaction will be made on the due date for value on that date 

in the place of the account specified for the relevant party in the CDS Admission Agreement 

(or such other account as may be designated by it from time to time for such purpose in 

accordance with the CDS Admissions Agreement and/or the Procedures, as applicable) and 

otherwise in accordance with the CDS Clearing Documentation, in freely transferable funds 

and in the manner customary for payments in the required currency. 

Deliveries under any Cleared Transaction will be made for receipt on the due date in the 

manner customary for the relevant obligation unless otherwise specified in or pursuant to 

the CDS Clearing Documentation.

3.2 Payments under Original Transactions

(a) If any Initial Payment Amount or Fixed Amount is due and payable under the terms of 

an Original Transaction on or before the Clearing Day on which the related Cleared 

Transactions are created by novation pursuant to Title III (Clearing Operations) of the 

CDS Clearing Rule Book, such amount shall be payable under and in accordance with 

the terms of such Original Transaction. In such event, no corresponding Initial Payment 

Amount or Fixed Amount shall be payable in respect of such Cleared Transactions. 

(b) If the Initial Payment Date of an Original Transaction is a date falling after the Clearing 

Day on which the Cleared Transactions related to such Original Transaction are 

created by novation pursuant to Title III (Clearing Operations) of the CDS Clearing Rule 

Book then the corresponding Initial Payment Date for the related Cleared Transactions 

shall occur on the Transaction Business Day which is also a Clearing Day immediately 

following the Clearing Day on which such related Cleared Transactions are created.
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4. CREDIT EVENTS, SUCCESSION EVENTS AND RENAME EVENTS

4.1 Determination of Credit Events and Succession Events

Notwithstanding any provision of any Cleared Transaction to the contrary:

(a) LCH SA (in its capacity as Calculation Agent with respect to such Cleared Transaction) 

shall not make any determination in respect of any matter which is or may be subject 

to resolution under Sections 3.5 (Succession Resolutions) or 3.6 (Substitute Reference 

Obligation Resolutions) of the DC Rules; and

(b) neither LCH SA nor any Clearing Member shall be entitled to deliver a Succession 

Event Notice or a Credit Event Notice (other than Credit Event Notices in relation to 

a Restructuring Credit Event in accordance with the terms of any Restructuring 

Cleared Transaction and, where applicable, the DTCC Rules and Section 7.8 (Failure 

to notify Matched Pairs)). 

4.2 Credit Event Timeline

(a) Publication of Credit Event Timeline

Upon a DC Credit Event Announcement, LCH SA will publish and make available to 

Clearing Members a timeline in respect of the relevant Credit Event and related 

Affected Cleared Transactions, to notify, among other things, the relevant Novation 

Cut-off Date(s), Compression Cut-off Date(s) and First Novation Date(s).

Any such timeline shall (i) be published and made available on the date of such DC 

Credit Event Announcement or, if LCH SA determines that such publication on such 

date is not practicably possible, as soon as practicable thereafter (but in no event later 

than the Transaction Business Day before the earlier of the relevant Novation Cut-off 

Date and the relevant Compression Cut-off Date) and (ii) in all cases be without 

prejudice to and consistent with the terms of the CDS Clearing Documentation and 

any relevant DC Resolutions. 

(b) Amendment of Credit Event Timeline

Any such timeline may be subject to subsequent amendment by LCH SA, by means of 

a Clearing Notice to Clearing Members, only to reflect subsequent DC Resolutions, 

timing provisions of any relevant Transaction Auction Settlement Terms and/or 

actions of DTCC, or in each case any subsequent amendments thereto. Any such 

amendment shall be made by LCH SA as soon as reasonably practicable following the 

relevant event. 

4.3 Novation and Compression following Credit Events

Any Restructuring Cleared Transaction (or portion thereof) in respect of which a valid Credit 

Event Notice is not delivered during the relevant CEN Triggering Period shall become eligible 

for compression in accordance with Chapter 3 (Compression) of Title III (Clearing Operations) 
LCH SA © 2021 55 Published on 30 July 2021[●]

of the CDS Clearing Rule Book on the Transaction Business Day following the related Exercise 

Cut-off Date applicable to the relevant Buyer.

By way of clarification to Chapter 3 (Compression) of Title III (Clearing Operations) of the CDS 

Clearing Rule Book, LCH SA shall effect compression of relevant Cleared Transactions if and 

to the extent requested by a Clearing Member.

4.4 Re-couponing of Restructuring Cleared Transactions

Following a Restructuring Credit Event, LCH SA may perform re-couponing in accordance with 

Section 5 of the Procedures on any Restructuring Cleared Transaction (or portion thereof) in 

respect of which a valid Credit Event Notice has not been delivered during the relevant CEN 

Triggering Period, provided that:

(a) LCH SA notifies (such notice, the “Initial Re-couponing Notice”) all of the relevant 

Clearing Members of its intention to perform such re-couponing and the intended 

date of such re-couponing (such date, the “Re-Couponing Date”);

(b) the Re-Couponing Date is no earlier than the later of (i) the end of the relevant CEN 

Trigger Period; and (ii) eight Transaction Business Days after the effective date of the 

Initial Re-couponing Notice;

(c) all of the relevant Clearing Members have subsequently consented to the proposed 

re-couponing, subject to confirmation of the terms of such re-couponing, within five 

Transaction Business Days of the effective date of the Initial Re-couponing Notice;

(d) after receiving consent from all relevant Clearing Members in accordance with 

paragraph (c) above, LCH SA notifies (such notice, the “Re-couponing Notice”) the 

relevant Clearing Members, no later than three Transactions Business Days prior to 

the Re-Couponing Date, of the proposed terms of the Resulting Single Name Cleared 

Transactions determined by LCH SA in accordance with Section 5 of the Procedures; 

and

(e) all of the relevant Clearing Members have subsequently consented to the proposed 

terms of such re-couponing process as set out in the Re-couponing Notice within two 

Transaction Business Days of the effective date of the Re-couponing Notice.

For the avoidance of doubt, if, in respect of a proposed re-couponing process, LCH SA does 

not obtain consent from all of the relevant Clearing Members in accordance with paragraphs 

(c) or (e) above, then LCH SA may elect to propose a re-couponing process again in accordance 

with this Section 4.4 for so long as any relevant Restructuring Cleared Transactions remain 

outstanding.

4.5 Succession Events and Cleared Transactions

If LCH SA determines that any Original Transaction submitted for novation or any Cleared 

Transaction subject to compression would have been subject to a Succession Event but will 

no longer be subject to such Succession Event upon novation or compression (as applicable) 
LCH SA © 2021 56 Published on 30 July 2021[●]

because of the Trade Date that would be specified with respect to the relevant Cleared 

Transactions, LCH SA may take such action as it deems necessary to ensure that such 

Succession Event is given effect with respect to such Cleared Transactions, including, without 

limitation, specifying an alternate Trade Date for purposes of Section 2.1 (Reference Entity) 

of the 2003 ISDA Credit Derivatives Definitions with respect to each relevant Cleared 

Transaction or, where LCH SA determines that an alternative course of action is not 

practicable, declining to accept such Original Transaction for novation or Cleared Transaction 

for compression (as applicable).

4.6 Succession Event Timeline

(a) Publication of Succession Event Timeline

Following the publication of a resolution of a relevant Credit Derivatives 

Determinations Committee to the effect that one or more Successors have been 

identified with respect to any Reference Entity for the purposes of any Cleared 

Transaction, LCH SA will publish and make available to Clearing Members a timeline in 

respect of the relevant Succession Event and related Affected Cleared Transactions, to 

notify, amongst other things, the relevant Novation Cut-off Date(s), Compression Cutoff Date(s) and First Novation Date(s). 

Any such timeline shall be published and made available as soon as practicable (but in 

no event later than the Transaction Business Day before the earlier of the relevant 

Novation Cut-off Date and the relevant Compression Cut-off Date) and shall in all cases 

be without prejudice to and consistent with the terms of the CDS Clearing 

Documentation and any relevant DC Resolutions. 

(b) Amendment of Succession Event Timeline

Any such timeline may be subject to subsequent amendment by LCH SA, by means of 

a Clearing Notice to Clearing Members, to reflect subsequent DC Resolutions and any 

relevant actions of DTCC, or in each case any subsequent amendments thereto. Any 

such amendment shall be made by LCH SA as soon as reasonably practicable following 

the relevant event.

4.7 Rename Events

In respect of Single Name Cleared Transactions, if a Reference Entity changes its name (a 

"Rename Event"), LCH SA will publish and make available to Clearing Members as soon as 

practicable upon becoming aware of such Rename Event a timeline in respect of the relevant 

Rename Event and related Affected Cleared Transactions, to notify, amongst other things, 

the relevant Novation Cut-off Date(s), Compression Cut-off Date(s) and First Novation 

Date(s). 

Any such timeline may be subject to subsequent amendment by LCH SA, by means of a 

Clearing Notice to Clearing Members, to reflect any relevant actions of DTCC. Any such 

amendment shall be made by LCH SA as soon as reasonably practicable following the relevant 

event.
LCH SA © 2021 57 Published on 30 July 2021[●]

4.8 Updating Eligible Index Versions

(a) Publication of Revised Index

Where the Index Publisher of an Eligible Index Version publishes a revised version of 

such index following:

(i) a DC Credit Event Announcement; 

(ii) a DC Resolution becoming effective which specifies that a Succession Event has 

occurred; or 

(iii) the determination of a Substitute Reference Obligation, 

LCH SA will in consultation with the CDSClear Product Committee determine whether 

such revised index version is fungible with the Eligible Index Version after taking 

account of the relevant Credit Event, Succession Event or, as applicable, Substitute 

Reference Obligation. 

(b) Index Version not Fungible

If LCH SA determines in consultation with the CDSClear Product Committee that such 

revised index version is not fungible with the Eligible Index Version after taking 

account of the relevant Credit Event, Succession Event or, as applicable, Substitute 

Reference Obligation, it shall notify DTCC accordingly so that DTCC does not 

automatically update the trade records for Index Cleared Transactions and Index CCM 

Client Transactions referencing the relevant Eligible Index Version in the TIW.

(c) Index Fungible

Unless LCH SA has notified DTCC in accordance with paragraph (b) above, following 

confirmation from DTCC that the trade records for Cleared Transactions referencing 

the relevant index have been updated in the TIW (such date a DTCC Re-versioning 

Date) so that such Cleared Transactions reference the revised index version (which 

such revised index version shall become the Eligible Index Version), LCH SA will update 

its corresponding records in the CDS Clearing System overnight following such DTCC 

Re-versioning Date. LCH SA will send the relevant reports referred to in Section 5 of 

the Procedures to the relevant Clearing Members on the Transaction Business Day 

following such DTCC Re-versioning Date which will be updated so as to refer to Cleared 

Transactions referencing the revised index version.

4.9 Reversal of DC Credit Event Announcements and Margining

If a DC Credit Event Announcement is reversed then, subject to Section 9.1(c)(iii)(B) of the 

2003 ISDA Credit Derivatives Definitions, LCH SA shall be obliged in accordance with Section 

3 of the Procedures to calculate and shall be entitled to call for Margin and/or be obliged to 

return Margin with respect to each Clearing Member on the basis that the DC Credit Event 

Announcement that is reversed had not been made.
LCH SA © 2021 58 Published on 30 July 2021[●]

5. RESTRUCTURING

5.1 Creation and Notification of Restructuring Matched Pairs

Following the occurrence of a Restructuring Credit Event, LCH SA will create (on one or, if the 

Novation Cut-off Date in respect of Index Cleared Transactions is prior to the Novation Cutoff Date in respect of Initial Single Name Cleared Transactions, two or more occasions) 

Restructuring Matched Pairs in accordance with Section 8.1 (Creation of Matched Pairs). Each 

such Restructuring Matched Pair shall be composed of two Restructuring Cleared 

Transactions created at the same time as and as a result of the termination of the relevant 

Single Name Cleared Transactions pursuant to Section 5.2 (Creation of Restructuring Cleared 

Transactions) below. 

LCH SA shall notify the relevant Matched Buyer and Matched Seller comprised within each 

Restructuring Matched Pair of: 

(a) the identity of the other Clearing Member (together with the address, fax number, 

telephone number, email address and other applicable notice details of such other 

Clearing Member) of such Matched Pair; and 

(b) the associated Restructuring Matched Pair Amount, 

as soon as reasonably practicable following the related Compression Cut-off Date, but in any 

event, at or prior to the RMP Notification Deadline. 

LCH SA will additionally provide to DTCC all relevant "Matching Information" (as defined in 

the DTCC Rules) on or prior to the Matching Information Notification Deadline. 

5.2 Creation of Restructuring Cleared Transactions

Upon the notification to the relevant Clearing Members of Restructuring Matched Pairs, the 

relevant Initial Single Name Cleared Transactions, Restructuring Cleared Transactions 

(created following the occurrence of a previous Restructuring Credit Event), Spin-off Single 

Name Cleared Transactions and Resulting Single Name Cleared Transactions entered into by 

each Clearing Member with LCH SA will be deemed terminated and new Restructuring 

Cleared Transactions of the same CDS Type will be deemed to be entered into between each 

such Clearing Member and LCH SA, with each such Restructuring Cleared Transaction having 

a Floating Rate Payer Calculation Amount corresponding to the Restructuring Matched Pair 

Amount of a Restructuring Matched Pair in which the relevant Clearing Member is comprised 

as a Matched Buyer or a Matched Seller, as applicable.

5.3 Triggering of Restructuring Cleared Transactions

Subject as set out in Section 7 (Delivery of Notices and Fallbacks), and notwithstanding 

anything to the contrary in the terms of any Cleared Transaction, Clearing Members may only 

deliver Credit Event Notices in relation to a Restructuring Credit Event during the CEN 

Triggering Period following notification of Restructuring Matched Pairs by LCH SA and subject 
LCH SA © 2021 59 Published on 30 July 2021[●]

always to the terms of the relevant Restructuring Cleared Transaction and, where applicable, 

the DTCC Rules.

Any Credit Event Notice delivered in respect of a Restructuring Matched Pair for an amount 

which is greater than the related Floating Rate Payer Calculation Amount shall be ineffective 

as to such excess.

5.4 Notice to Exercise Movement Option

Subject as set out in Section 7 (Delivery of Notices and Fallbacks), Clearing Members may only 

deliver a Notice to Exercise Movement Option during the NEMO Triggering Period, subject 

always to the other terms of the relevant Restructuring Cleared Transaction and, where 

applicable, the DTCC Rules. 

5.5 Reversal of DC Credit Event Announcements

If a DC Credit Event Announcement made in relation to a Restructuring Credit Event is 

reversed then, subject to Section 9.1(c)(iii)(B) of the 2003 ISDA Credit Derivatives Definitions:

(a) LCH SA shall have no obligation to create Restructuring Matched Pairs in accordance 

with Section 5.1 (Creation and Notification of Restructuring Matched Pairs), any such 

Restructuring Matched Pairs so created shall be deemed not to have been created 

and any Credit Event Notices delivered in connection with such Restructuring 

Matched Pairs shall be deemed to be ineffective; 

(b) LCH SA shall, where applicable, make relevant registrations in the TIW in order to 

reflect such reversal which shall also automatically result in such registrations being 

made in respect of any related CCM Client Transactions; and

(c) Section 4.9 (Reversal of DC Credit Event Announcements and Margining) shall apply. 

5.6 Reports

Without prejudice to the notification requirements set out elsewhere in the CDS Clearing 

Documentation, LCH SA will communicate to the relevant Clearing Members, on the basis of 

information received from DTCC or, as applicable, from Clearing Members, amongst other 

things:

(a) the aggregate Floating Rate Payer Calculation Amounts of Restructuring Cleared 

Transactions to which they are a party and which are the subject of Credit Event 

Notices; and

(b) the results of the exercise of any Movement Option in relation to Cleared 

Transactions to which they are a party, 

at or around 7.00 p.m. on each day during each CEN Triggering Period and NEMO Triggering 

Period, as applicable, through the reports referred to in Section 5 of the Procedures. 
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For the avoidance of doubt, such communication shall not affect the validity or effectiveness 

of any Credit Event Notice or Notice to Exercise Movement Option which shall be subject to 

the terms of the relevant Restructuring Cleared Transaction.

6. PHYSICAL SETTLEMENT

6.1 General Terms relating to Physical Settlement

Where Physical Settlement is applicable as the Fallback Settlement Method pursuant to 

Section 12.1 (Auction Settlement) or 12.17 (Movement Option) of the 2003 ISDA Credit 

Derivatives Definitions, each Cleared Transaction will be subject to settlement in accordance 

with its terms and this Section 6 (Physical Settlement).

LCH SA has implemented a process, as set-out in this Section 6 (Physical Settlement), pursuant 

to which Clearing Members will manage the physical delivery process bilaterally in respect of 

any Cleared Transactions for which Physical Settlement is applicable. 

Notwithstanding such process, LCH SA shall remain the legal counterparty for any such 

Cleared Transactions for which Physical Settlement is applicable and shall continue to be 

liable with respect to its obligations relating to such Physical Settlement, subject to its terms 

and this Section 6 (Physical Settlement).

6.2 Creation and Notification of Settlement Matched Pairs

LCH SA will create Settlement Matched Pairs in accordance with Section 8.1 (Creation of 

Matched Pairs) and notify Matched Buyer and Matched Seller comprised within each 

Settlement Matched Pair of: 

(a) the identity of the other Clearing Member (together with the address, fax number, 

telephone number, email address and other applicable notice details of each such 

other Clearing Member); and 

(b) the associated Settlement Matched Pair Delivery Amount, 

at or prior to the SMP Notification Deadline. 

Notwithstanding the above, the Settlement Matched Pair for a Restructuring Cleared 

Transaction shall be the Restructuring Matched Pair previously created by LCH SA in 

accordance with Section 5.1 (Creation and Notification of Restructuring Matched Pairs) in 

respect of such Restructuring Cleared Transaction.

6.3 Physically Settled Cleared Transactions

Following the actual or deemed creation of such Settlement Matched Pairs, the relevant 

Cleared Transactions in respect of which the Fallback Settlement Method applies will be 

construed as if they had been terminated and new Cleared Transactions of the same CDS 

Type will be deemed to have been entered into between each such Clearing Member and 

LCH SA (each such deemed Cleared Transaction being a "Physically Settled Cleared 

Transaction"). 
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Each such Physically Settled Cleared Transaction shall have a Floating Rate Payer Calculation 

Amount corresponding to the Settlement Matched Pair Delivery Amount of a Settlement 

Matched Pair in which the relevant Clearing Member is comprised as a Matched Buyer or a 

Matched Seller, as applicable. 

6.4 Matched Seller Calculation Agent

Notwithstanding any provision to the contrary in a Physically Settled Cleared Transaction (but 

subject as set out in Section 6.10 (Failure to pay Physical Settlement Amount), the "Calculation 

Agent" for the purposes of Article VIII (Terms relating to Physical Settlement) and Section 9.8 

(Partial Cash Settlement Terms) of the 2003 ISDA Credit Derivatives Definitions shall be the 

relevant Matched Seller.

6.5 Notices of Physical Settlement

(a) No Notices of Physical Settlement until Notification of Settlement Matched Pairs 

Subject as set out at Section 7.8 (Failure to notify Matched Pairs) and notwithstanding 

anything to the contrary in the terms of any Cleared Transaction, Clearing Members 

may not deliver any Notices of Physical Settlement in respect of any Affected Cleared 

Transactions until they have been notified of their Settlement Matched Pairs. 

(b) Notice of Physical Settlement to contain Matched Buyer Account Information

Each Notice of Physical Settlement delivered by Matched Buyer shall contain, in 

addition to the information required under the terms of the relevant Physically Settled 

Cleared Transaction, Matched Buyer's account information. 

(c) LCH SA not Liable 

LCH SA shall have no liability with respect to any loss, cost, damage or expense

suffered or incurred by a Matched Seller as a result of any error or inaccuracy in any 

Notice of Physical Settlement or any NOPS Amendment Notice sent by a Matched 

Buyer and shall have no duty to verify any such notice or the contents thereof.

6.6 Delivery of Non-DVP Obligations

The following shall apply in relation to any Settlement Matched Pair where the relevant 

Matched Buyer specifies a Non-DVP Obligation in a Notice of Physical Settlement or NOPS 

Amendment Notice:

(a) The relevant Matched Buyer shall notify LCH SA that it is ready to Deliver the relevant 

Non-DVP Obligation at or prior to 5.30 p.m. on the Transaction Business Day prior to 

the date on which Delivery is scheduled to occur. In such notice, the relevant 

Matched Buyer shall also specify the amount of any expenses payable to it under 

Section 9.2(c)(vi) of the 2003 ISDA Credit Derivatives Definitions.

(b) LCH SA shall notify the relevant Matched Seller at or prior to 6.30 p.m. on the 

Transaction Business Day prior to the date on which Delivery is scheduled to occur 
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that it is obligated to pay LCH SA the amount of the relevant Physical Settlement 

Amount corresponding to the Outstanding Amount of such Non-DVP Obligation and 

any amounts in respect of expenses notified by the relevant Matched Buyer before 

9.00 a.m. on the following Transaction Business Day.

(c) The relevant Matched Seller shall pay to LCH SA the amount(s) so requested on or 

prior to 9.00 a.m. on the Transaction Business Day immediately following the date on 

which the relevant Matched Buyer notified LCH SA of its readiness to Deliver provided 

that the request for payment has been made in a timely manner as set out above.

(d) LCH SA shall notify the relevant Matched Buyer that it has received payment at or 

prior to 5.30 p.m. on the Transaction Business Day in which LCH SA receives payment, 

provided that payment is received by LCH SA at or prior to 9.00 a.m. on such 

Transaction Business Day as set out above.

(e) The relevant Matched Seller shall notify LCH SA that Delivery has occurred by 5.30 

p.m. on the Transaction Business Day on which Matched Seller receives Delivery of 

the relevant Non-DVP Obligations. Notices received after 3.30 p.m. will be deemed 

received on the next following Transaction Business Day, unless LCH SA agrees 

otherwise.

(f) If and to the extent that LCH SA has received payment from the relevant Matched 

Seller of the Physical Settlement Amount in full on a timely basis as set out above, 

LCH SA shall pay the Physical Settlement Amount and any expenses due to the 

relevant Matched Buyer under paragraph 9.2(c)(vi) of the 2003 ISDA Credit 

Derivatives Definitions on or prior to 9.00 a.m. on the Transaction Business Day 

following the Transaction Business Day on which LCH SA receives the notice referred 

to in sub-paragraph (e) above from the relevant Matched Seller.

(g) If and to the extent that Delivery of the relevant Non-DVP Obligations has not been 

effected by the relevant Matched Buyer in accordance with terms of the relevant 

Physically Settled Cleared Transaction as of the expiry of the third Transaction 

Business Day following delivery of the relevant Matched Buyer's notice referred to 

above, the relevant Matched Seller may request LCH SA to repay the Physical 

Settlement Amount not earlier than the first Transaction Business Day following the 

date on which such request is effectively delivered to LCH SA.

6.7 Alternative Delivery Procedure

A Matched Buyer and Matched Seller comprising a Settlement Matched Pair may elect to 

exercise their rights against and perform obligations to LCH SA in relation to the Settlement 

Matched Pair Delivery Amount (or any portion thereof) directly as between themselves. To 

exercise such option, the relevant Matched Buyer and Matched Seller must each notify LCH 

SA accordingly (in the form set out in Appendix V hereto) specifying the relevant Matched 

Contracts in respect of the related relevant Settlement Matched Pair Delivery Amounts and 

obtain the consent of LCH SA, which consent will not be unreasonably withheld or delayed 
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by more than one Transaction Business Day following receipt of such notification by Matched 

Buyer and Matched Seller.

With effect from the time that LCH SA confirms its consent, the Settlement Matched Pair 

Delivery Amount will be reduced by the amount specified in the joint notice of the relevant 

Matched Buyer and Matched Seller, and the relevant Matched Buyer and Matched Seller shall 

each perform their obligations to each other and shall each acquire enforcement rights in 

respect of the other party's obligations to it pursuant to the Contracts (Rights of Third Parties) 

Act 1999 in respect of any such reduction as agreed between them.

6.8 Buy-in of Bonds – Matched Seller has entered into CCM Client Transaction

The following provisions shall solely be applicable to a Matched Seller that is a CCM in 

respect of the Matched Contracts of the Settlement Matched Pair if such Matched Seller 

notifies Matched Buyer and LCH SA that it has a CCM Client Transaction which corresponds 

to the Matched Seller Contract:

(a) Buy-in of Bonds – Settlement Matched Pair

Section 9.9 (Buy-in of Bonds Not Delivered) of the 2003 ISDA Credit Derivatives 

Definitions shall not apply in respect of the Matched Contracts of the Settlement 

Matched Pair.

(b) Deemed Buy-in of Bonds resulting from CCM Client Transaction of Matched Seller that 

is a CCM

Provided that Physical Settlement has not already occurred in respect of the Matched 

Contracts of a Settlement Matched Pair, if: 

(i) the Matched Seller that is a CCM receives a Buy-in Notice from its CCM Client 

in respect of the CCM Client Transaction between such Matched Seller and its 

CCM Client which is validly delivered pursuant to the terms of such CCM Client 

Transaction (including the Mandatory Provisions), then such Matched Seller 

shall notify Matched Buyer and LCH SA of its receipt of such Buy-in Notice and 

of the content thereof and Matched Buyer's right to Deliver the Relevant Bonds 

specified in the relevant Buy-in Notice shall be suspended until the fourth 

Business Day (inclusive) following the Buy-In Date specified in the relevant BuyIn Notice (the "Deemed Buy-in Period"); and

(ii) such Matched Seller notifies Matched Buyer and LCH SA that it has been 

notified by its CCM Client pursuant to Section 9.9 (Buy-in of Bonds Not 

Delivered) of the 2003 ISDA Credit Derivatives Definitions that a Buy-in Price 

has been determined in respect of Relevant Bonds for the purposes of the CCM 

Client Transaction between such Matched Seller and its CCM Client, then on 

the third Business Day following receipt by Matched Seller of such notice from 

its CCM Client (which such date Matched Seller shall specify) (the "Buy-in 

Effective Date"): 
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(A) Matched Buyer will be deemed to have Delivered to such Matched 

Seller an Outstanding Principal Balance of the Deliverable Obligations 

specified in the Notice of Physical Settlement or any NOPS Amendment 

Notice, as applicable, for which a Buy-in Price was determined by the 

CCM Client; and

(B) the Physical Settlement Amount to be paid by such Matched Seller to 

Matched Buyer in respect of the Matched Contracts of the Settlement 

Matched Pair shall be reduced (but not below zero) by an amount equal 

to the amount by which the Physical Settlement Amount to be paid to 

such Matched Seller by its CCM Client in respect of the CCM Client 

Transaction has been reduced pursuant to Section 9.9 (Buy-in of Bonds 

Not Delivered) of the 2003 ISDA Credit Derivatives Definitions.

Such Matched Seller shall notify Matched Buyer and LCH SA of the Outstanding 

Principal Balance of the Deliverable Obligations and the Physical Settlement 

Amount reduction determined in respect of its CCM Client Transaction for the 

purposes of (A) and (B) above.

6.9 Alternative Procedures relating to Loans – Buyer Right to Deliver (Section 9.10(a) 2003 ISDA 

Credit Derivatives Definitions) 

The following provision shall solely be applicable in respect of the Matched Contracts of the 

Settlement Matched Pair if a Matched Buyer that is a CCM notifies Matched Seller and LCH 

SA that it has a CCM Client Transaction which corresponds to the Matched Buyer Contract:

If a Matched Buyer that is a CCM notifies Matched Seller and LCH SA that it has received a 

Bond or Loan from its CCM Client in respect of its CCM Client Transaction pursuant to Section 

9.10(a) (Alternative Procedures Relating to Loans Not Delivered) of the 2003 ISDA Credit 

Derivatives Definitions, then such Bonds or Loans shall be deemed specified in the Notice of 

Physical Settlement or any NOPS Amendment Notice for the purposes of the Matched 

Contracts of the Settlement Matched Pair.

6.10 Failure to pay Physical Settlement Amount

If, in relation to any Settlement Matched Pair, a Matched Seller fails to pay all or part of the 

Physical Settlement Amount (the Failed Amount) to the related Matched Buyer, as designee 

for LCH SA, when due:

(a) the relevant Matched Buyer may and the relevant Matched Seller shall, as soon as 

practicable, give notice in writing to LCH SA, giving all material details of the 

Settlement Matched Pair involved, the relevant failure to pay and the Failed Amount;

(b) such failure to pay shall not constitute or be deemed to constitute a breach of 

contract, event of default or failure to pay by LCH SA under the CDS Clearing 

Documentation or otherwise (but such failure to pay may, for the avoidance of doubt, 

constitute a breach of the CDS Clearing Documentation and/or a Payment Failure for 
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the purposes of Article 4.3.1.1 of the CDS Clearing Rule Book by or with respect to the 

relevant Clearing Member);

(c) if the relevant Matched Buyer elects to notify LCH SA of such failure to pay as 

contemplated above, such Matched Buyer may give any such notice as soon as 

reasonably practicable after the occurrence of such failure to pay by the relevant 

Matched Seller;

(d) upon notice being given to LCH SA by the relevant Matched Buyer, "Cash Settlement" 

between the relevant Matched Buyer and LCH SA and the relevant Matched Seller 

and LCH SA pursuant to the Partial Cash Settlement Terms (set out in Section 9.8 

(Partial Cash Settlement Terms) of the 2003 ISDA Credit Derivatives Definitions, as 

amended by this CDS Clearing Supplement) shall be deemed to apply to the relevant 

Physically Settled Cleared Transactions of the Settlement Matched Pair with respect 

to the Deliverable Obligations corresponding to the Failed Amount as though: 

(i) the Deliverable Obligations not Delivered were Undeliverable Obligations; 

(ii) the Latest Permissible Physical Settlement Date were the date on which the 

relevant Matched Buyer gave the relevant notice to LCH SA; 

(iii) Indicative Quotations were not applicable; 

(iv) the relevant Matched Buyer were the Calculation Agent in respect of the 

Physically Settled Cleared Transaction of the Settlement Matched Pair to which 

it is a direct party; and

(v) the Cash Settlement Amount determined in respect of the Physically Settled 

Cleared Transaction between Matched Buyer and LCH SA is also the Cash 

Settlement Amount in respect of the corresponding Physically Settled Cleared 

Transaction of the Settlement Matched Pair; and

(e) LCH SA and the relevant Matched Buyer will settle the relevant Physically Settled 

Cleared Transaction accordingly.

6.11 Partial Cash Settlement due to Impossibility or Illegality

Section 9.3 (Partial Cash Settlement due to Impossibility or Illegality) of the 2003 ISDA Credit 

Derivatives Definitions shall apply to a Physically Settled Transaction in the circumstances 

contemplated therein, provided that Matched Buyer or Matched Seller notifies the other 

Clearing Member comprised in the relevant Settlement Matched Pair and LCH SA accordingly. 

In such case, the related Physically Settled Cleared Transaction entered into between LCH SA 

and the other Clearing Member comprised in the relevant Settlement Matched Pair shall 

likewise be subject to "Cash Settlement" pursuant to the Partial Cash Settlement Terms and 

Section 6.14 (Consequences of Cash Settlement). 
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6.12 Fallback to Cash Settlement in respect of Non-Deliverable Obligations

(a) If Matched Buyer is not permitted to Deliver one or more Deliverable Obligations 

(such Deliverable Obligations, the Non-Deliverable Obligations) specified in the 

relevant Notice of Physical Settlement or NOPS Amendment Notice to Matched Seller 

as designee for LCH SA in the relevant Matched Pair because:

(i) the amount of such Deliverable Obligation to be Delivered is less than the 

relevant minimum denomination of such Deliverable Obligation; or

(ii) such Matched Seller is not a permitted transferee under such Deliverable 

Obligation (and, in the case of this sub-section (ii), such circumstance would 

not constitute an illegality or impossibility outside the control of a relevant 

party for the purposes of Section 9.3 (Partial Cash Settlement due to 

Impossibility or Illegality) of the 2003 ISDA Credit Derivatives Definitions),

then it shall notify the relevant Matched Seller and LCH SA (in the form set out in 

Appendix VI hereto) accordingly describing in reasonable detail the relevant 

circumstances. 

With effect from such notification, such occurrence shall be treated, in relation to each 

relevant Physically Settled Cleared Transaction, as an illegality or impossibility outside 

the control of a relevant party for the purpose of Section 9.3 (Partial Cash Settlement 

Due to Impossibility or Illegality) of the 2003 ISDA Credit Derivatives Definitions. 

(b) Upon notice being given to LCH SA by Matched Buyer under sub-paragraph (a) of this 

Section 6.12 (Fallback to Cash Settlement in respect of Non-Deliverable Obligations), 

"Cash Settlement" pursuant to the Partial Cash Settlement Terms shall be deemed to 

apply to the Matched Contracts in respect of the relevant Settlement Matched Pair 

with respect to the Non-Deliverable Obligations as though the Non-Deliverable 

Obligations were Undeliverable Obligations and the provisions set out in Section 6.14

(Consequences of Cash Settlement) of this CDS Clearing Supplement shall apply. 

6.13 Cash Settlement Resulting from CCM Client Transaction of a Matched Buyer that is a CCM

The following provision shall solely be applicable in respect of the Matched Contracts of the 

Settlement Matched Pair if a Matched Buyer that is a CCM notifies Matched Seller and LCH 

SA that it has a CCM Client Transaction which corresponds to the Matched Buyer Contract:

If a Matched Buyer that is a CCM notifies Matched Seller and LCH SA that the corresponding 

CCM Client Transaction between such Matched Buyer and its CCM Client is to be settled (in 

whole or in part) by Cash Settlement pursuant to Section 9.3 (Partial Cash Settlement Due to 

Impossibility or Illegality) of the 2003 ISDA Credit Derivatives Definitions or Mandatory 

Provision 7.2 (Fallback to Cash Settlement in respect of Non-Deliverable Obligations), then: 

(a) "Cash Settlement" shall be deemed to apply (in whole or in part, as applicable) to the 

Matched Contracts of the Settlement Matched Pair pursuant to the Partial Cash 

Settlement Terms and Section 6.14 (Consequences of Cash Settlement); 
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(b) the 'Undeliverable Obligations' for the purposes of the Partial Cash Settlement Terms 

shall be the Undeliverable Obligations or Non-Deliverable Obligations in respect of 

the corresponding CCM Client Transaction; and

(c) the Cash Settlement Amount and the Cash Settlement Date in respect of the Matched 

Contracts of the Settlement Matched Pair shall be the same as the Cash Settlement 

Amount and the Cash Settlement Date determined in respect of the corresponding 

CCM Client Transaction. 

6.14 Consequences of Cash Settlement

If the circumstances set out in either Section 6.11 (Partial Cash Settlement Due to 

Impossibility or Illegality) or paragraph (a) of Section 6.12 (Fallback to Cash Settlement in 

respect of Non-Deliverable Obligations) or Section 6.13 (Cash Settlement Resulting from CCM 

Client Transaction of a Matched Buyer that is a CCM) apply, then:

(a) the Latest Permissible Physical Settlement Date in respect of the relevant Physically 

Settled Cleared Transaction will be deemed to be the first date on which the relevant 

Matched Buyer or Matched Seller effectively gave the relevant notice to both LCH SA 

and the other Clearing Member as referred to in Section 6.11 (Partial Cash Settlement 

Due to Impossibility or Illegality) or paragraph (a) of Section 6.12 (Fallback to Cash 

Settlement in respect of Non-Deliverable Obligations) or Section 6.13 (Cash 

Settlement Resulting from CCM Client Transaction of a Matched Buyer that is a CCM) 

above, as applicable, (and for these purposes, Section 9.7 (Latest Permissible Physical 

Settlement Date) of the 2003 ISDA Credit Derivatives Definitions shall not apply);

(b) the relevant Matched Buyer will be deemed to be the Calculation Agent;

(c) LCH SA and the relevant Matched Buyer will settle the applicable Matched Buyer 

Contract, and LCH SA and the relevant Matched Seller will settle the applicable 

Matched Seller Contract, accordingly; and

(d) where sub-paragraph (a)(ii) of Section 6.12 (Fallback to Cash Settlement in respect of 

Non-Deliverable Obligations) applies, Indicative Quotations shall not be applicable.

6.15 Amendments to Section 9.8(k) of 2003 ISDA Credit Derivatives Definitions

Solely for the purposes of Section 6.11 (Partial Cash Settlement due to Impossibility or 

Illegality), Section 6.12 (Fallback to Cash Settlement in respect of Non-Deliverable 

Obligations), Section 6.13 (Cash Settlement Resulting from CCM Client Transaction of a 

Matched Buyer that is a CCM) and Section 6.14 (Consequences of Cash Settlement) of this CDS 

Clearing Supplement, Section 9.8(k) of the 2003 ISDA Credit Derivatives Definitions is 

amended by inserting the following at the beginning thereof:

"(A) For the purposes hereof, in addition to the requirements of Section 7.10, each firm 

Quotation shall:
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(1) be for a transaction with Matched Buyer (or its designee) (the Relevant Buyer) 

pursuant to which the Relevant Buyer agrees to Deliver the Deliverable 

Obligations to the Dealer submitting the firm quotation (the Quoting Dealer), 

which transaction shall be governed by documentation that is consistent with 

market practice applicable to the sale and purchase of Deliverable Obligations 

on the Valuation Date (which may be determined by the relevant Credit 

Derivatives Determinations Committee), including, without limitation, a 

representation that the Quoting Dealer has completed all "know your 

customer" or similar requirements under all applicable laws, regulations and 

internal compliance procedures relating to a transaction with the Relevant 

Buyer and in respect of the Reference Entity;

(2) be capable of acceptance by the Relevant Buyer (for such purposes, each firm 

Quotation must, inter alia, be obtained from a Dealer with whom the Relevant 

Buyer, in its sole and absolute discretion, determines that it is able, in 

accordance with all its internal compliance and policy requirements, to transact 

and to Deliver the Deliverable Obligations) and be open for acceptance by the 

relevant party for at least 30 minutes; and

(3) be obtained on the basis that if the Relevant Buyer agrees to Deliver the 

Deliverable Obligations to such Quoting Dealer on the terms set forth herein, 

such Quoting Dealer agrees to pay the settlement amount (calculated and 

payable for this purpose in accordance with the relevant market standard 

documentation and based on the price so quoted) that would be payable to 

the Relevant Buyer for such Deliverable Obligations.

(B) Otherwise,".

6.16 Subsequent Determination by the Credit Derivatives Determinations Committee with 

respect to an Auction

If the Fallback Settlement Method applies in respect of a Cleared Transaction and a 

subsequent resolution of the Credit Derivatives Determinations Committee determines that 

Transaction Auction Settlement Terms will be published, LCH SA shall have no obligation to 

create Settlement Matched Pairs in accordance with Section 6.2 (Creation and Notification of 

Settlement Matched Pairs). 

Unless settlement has occurred with respect to any Settlement Matched Pairs prior to such 

determination, any such Settlement Matched Pairs so created shall be deemed not to have 

been created and any notices delivered in connection with such Settlement Matched Pairs 

shall be deemed to be ineffective. 

LCH SA shall effect any relevant registrations in the TIW in order to reflect the application of 

Auction Settlement as the Settlement Method in respect of the relevant Cleared 

Transactions.
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6.17 Physical Settlement Costs

If the Fallback Settlement Method applies in respect of a Cleared Transaction and any

amounts are payable in relation to any costs or expenses of Physical Settlement, then:

(a) where such amount would otherwise be payable by LCH SA to Matched Buyer or 

Matched Seller (the Recipient), such amount shall be payable to the Recipient by the 

other party to the Matched Contract who is not the Recipient, as designee to pay such 

amount on behalf of LCH SA; and

(b) where such amount would otherwise be payable to LCH SA by Matched Buyer or 

Matched Seller (the Payer), such amount shall be payable by the Payer to the other 

party to the Matched Contract who is not the Payer, as designee to receive such 

amount on behalf of LCH SA. 

Any Matched Seller or Matched Buyer who is required to make any payment as designee on 

behalf of LCH SA pursuant to this Section 6.17 shall not be entitled to any reimbursement 

from LCH SA in respect of such amount.

Any Matched Seller or Matched Buyer who receives any payment pursuant to this Section 

6.17 shall not be obliged to remit to LCH SA any such amount so received (without prejudice 

to any rights of LCH SA where there is a failure to Deliver).

LCH SA shall not be liable to a Matched Buyer or a Matched Seller for any of the costs and 

expenses of Physical Settlement of any Cleared Transaction.

6.18 Representations and Agreements relating to Physical Settlement

(a) Claims by Matched Seller against LCH SA in respect of Obligations Delivered by 

Physical Settlement

If a Matched Seller pursues a claim against LCH SA under Sections 9.2(a), (b), (c)(i) or 

(c)(iv) of the 2003 ISDA Credit Derivatives Definitions in respect of any obligations 

Delivered by way of Physical Settlement of any Matched Seller Contract, then:

(i) notwithstanding any provision of the 2003 ISDA Credit Derivatives Definitions 

to the contrary, LCH SA shall only be liable to make payments to that Matched 

Seller in respect of that claim to the extent of amounts recovered, including, 

without limitation, any amounts recovered by way of set-off or netting, by LCH 

SA from or on behalf of the related Matched Buyer in respect of any 

corresponding claims under or in connection with the Matched Buyer Contract 

(including, without limitation, following the declaration of an Event of Default 

in respect of such Matched Buyer) and after deducting any costs and expenses 

reasonably incurred by LCH SA in pursuing such corresponding claims for 

recovery under or in connection with the Matched Buyer Contract;

(ii) LCH SA will use reasonable efforts to pursue any claim it may have against the 

related Matched Buyer but, notwithstanding Section 6.18(a)(i) above, LCH SA 
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will, in the pursuit of such claims, act as though its liability to Matched Seller 

under the Matched Seller Contract was not limited or restricted in any way; and

(iii) references to indemnity provisions set out in Section 9.2(a), 9.2(b) and 9.2(c)(iv) 

of the 2003 ISDA Credit Derivatives Definitions shall, in connection with a 

Matched Buyer Contract, be interpreted without regard to the limitations to 

Matched Seller's recourse to LCH SA under the corresponding Matched Seller 

Contract imposed by the provisions of this Section 6.18(a) and such limitations 

shall not restrict a Matched Seller from making a claim or raising a Dispute.

(b) Right of Matched Seller to enforce against Matched Buyer

Without prejudice to paragraph (a) above, a Matched Seller shall be entitled to enforce 

Sections 9.2(a), (b), (c)(i) and (c)(iv) of the 2003 ISDA Credit Derivatives Definitions 

against the related Matched Buyer in respect of any obligations Delivered by way of 

Physical Settlement of any Physically Settled Cleared Transaction under the Contracts 

(Rights of Third Parties) Act 1999 as though Matched Seller were party to the relevant 

Matched Buyer Contract in place of LCH SA.

(c) Satisfaction of Claim by Matched Buyer discharges Liabilities owed to and by LCH 

SA

For the avoidance of doubt, if a Matched Buyer satisfies a claim made by a Matched 

Seller directly against the relevant Matched Buyer under Sections 9.2(a), (b), (c)(i) or 

(c)(iv) of the 2003 ISDA Credit Derivatives Definitions pursuant to the rights granted to 

such Matched Seller under paragraph (b) above, such satisfaction shall also constitute 

complete satisfaction and discharge of the corresponding liability of such Matched 

Buyer to LCH SA and the corresponding liability of LCH SA to such Matched Seller in 

respect of such claim.

(d) Effect of Illegality or Tax or other Expense resulting from Designation through 

Creation of Matched Pairs

The last sentence of Section 9.2(c)(iv) of the 2003 ISDA Credit Derivatives Definitions 

shall not operate so as to prevent LCH SA from creating any Matched Pair in 

accordance with this CDS Clearing Supplement, and LCH SA shall have no obligation to 

grant any indemnity with respect to any Tax, loss or cost to any Matched Buyer or 

Matched Seller thereunder. 

If the circumstances contemplated at Section 9.2(c)(iv)(A) or (B) of the 2003 ISDA 

Credit Derivatives Definitions apply in respect of any Physically Settled Cleared 

Transaction and any related Settlement Matched Pair (in the case of (B), as notified by 

the Clearing Member which is the non-designating party for such purpose to the other 

Clearing Member comprised in the relevant Settlement Matched Pair prior to the first 

Delivery Date), then an impossibility shall be deemed to have occurred with respect 

to Physical Settlement of the relevant Physically Settled Cleared Transactions, and 

Section 9.3 (Partial Cash Settlement due to Impossibility or Illegality) of the 2003 ISDA 
LCH SA © 2021 71 Published on 30 July 2021[●]

Credit Derivatives Definitions (as amended by this CDS Clearing Supplement) shall 

apply.

6.19 Miscellaneous Provisions relating to Physical Settlement

(a) Margin

For the avoidance of doubt, LCH SA will continue to call all Margin and such Margin 

will remain due in relation to any Cleared Transaction to which Physical Settlement 

applies until: 

(i) LCH SA has received a Notice of Physical Settlement from each Clearing 

Member; 

(ii) LCH SA has received a No Physical Settlement Confirmation from each Clearing

Member; or 

(iii) in each case, any related dispute is referred to and finally resolved by 

arbitration or by litigation, as applicable, in accordance with the CDS Dispute 

Resolution Protocol, subject to the provisions of Sections 8 and 9 of the 

Procedures.

(b) Notification of Completion of Physical Settlement

Upon completion of Physical Settlement by the relevant Matched Pair of a Physically 

Settled Cleared Transaction, Matched Buyer and Matched Seller shall inform LCH SA 

as soon as reasonably practicable and in any event before the date falling two 

Transaction Business Days following such completion (the Physical Settlement 

Confirmation Deadline) by notice (a Physical Settlement Confirmation) in the form 

set out at Appendix VII hereto. 

(c) Notification that Physical Settlement will not occur

If no Notice of Physical Settlement has been delivered within the relevant time period 

permitted for such delivery in accordance with the terms of the relevant Physically 

Settled Cleared Transaction and, accordingly, Physical Settlement will not, under the 

terms of the relevant Physically Settled Cleared Transaction, occur, Matched Buyer 

and Matched Seller shall inform LCH SA as soon as reasonably practicable thereafter 

and in any event before the date falling two Transaction Business Days following the 

relevant date after which delivery of a Notice of Physical Settlement is no longer 

permitted in accordance with the terms of the relevant Physically Settled Cleared 

Transaction (the No Physical Settlement Confirmation Deadline) by notice (a No

Physical Settlement Confirmation) in the form set out at Appendix VIII hereto. 

(d) Dispute regarding Physical Settlement

If LCH SA receives a Physical Settlement Confirmation or No Physical Settlement 

Confirmation from one relevant Matched Buyer or Matched Seller only at or prior to 

the relevant Physical Settlement Confirmation Deadline or No Physical Settlement 
LCH SA © 2021 72 Published on 30 July 2021[●]

Confirmation Deadline, as the case may be, there shall be deemed to be a Dispute with 

respect to the Physically Settled Cleared Transactions between LCH SA and each 

relevant Clearing Member.

7. DELIVERY OF NOTICES AND FALLBACKS

7.1 General Rules relating to Notices

(a) Methods of Delivery and deemed Time of Delivery

Subject to Section 7.2 (Oral Notices) and without prejudice to Section 1.10 

(Requirements Regarding Notices) and the remaining provisions of the 2003 ISDA 

Credit Derivatives Definitions (including, for the avoidance of doubt, in relation to 

notices permitted to be given orally), any notice or other communication in respect of 

any Cleared Transaction may be given in any manner described below and will be 

deemed effective as indicated:

(i) if delivered in person or by courier, on the date and at the time it is delivered;

(ii) if sent by facsimile transmission, on the date it is received by a responsible 

employee of the recipient in legible form (it being agreed that the burden of 

proving receipt will be on the sender and will not be met by a transmission 

report generated by the sender’s facsimile machine);

(iii) if sent by certified or registered mail (airmail, if overseas) or the equivalent 

(return receipt requested), on the date it is delivered or its delivery is 

attempted; or

(iv) if sent by electronic messaging system (including e-mail or any other electronic 

access solution established by LCH SA for such purpose), on the date it is 

received,

unless the date of that delivery (or attempted delivery) or that receipt, as applicable, 

is not a Transaction Business Day or that communication is delivered (or attempted) 

or received, as applicable, pursuant to the above after 6.00 p.m. in the location of the 

recipient on a Transaction Business Day, in which case that communication will be 

deemed given and effective on the first following day that is a Transaction Business 

Day.

(b) Notices from or to LCH SA

Any such notice or communication given by LCH SA to a Clearing Member or vice versa 

shall (except where delivered via a relevant DTCC Notice Facility) be given to the 

address or number previously specified in or previously notified for the relevant 

purpose in accordance with the CDS Admissions Agreement or the Procedures.
LCH SA © 2021 73 Published on 30 July 2021[●]

(c) Manual Notices between Clearing Members

Notices given by a Clearing Member to another Clearing Member comprised in a 

relevant Matched Pair and which are not delivered via a relevant DTCC Notice Facility 

shall be given to the address or number notified by LCH SA to the deliveror pursuant 

to Sections 5.1 (Creation and Notification of Restructuring Matched Pairs) or 6.2

(Creation and Notification of Settlement Matched Pairs). 

Such notices shall only be deemed to be delivered effectively by LCH SA through the 

relevant Clearing Member as its designee as against the recipient where the address 

or number so notified by LCH SA corresponds in all material respects to the address or 

number, as applicable, specified by such recipient in or pursuant to the CDS 

Admissions Agreement. 

(d) No Obligation on LCH SA to verify Signatories

LCH SA shall have no obligation to verify the authority of any signatory of any notice 

delivered by any Clearing Member directly pursuant to this Section 7 (Delivery of 

Notices and Fallbacks).

7.2 Oral Notices 

Notwithstanding the provisions of the 2003 ISDA Credit Derivatives Definitions, where, by 

way of exception as contemplated in this Section 7, Credit Event Notices and Notices to 

Exercise Movement Option are to be delivered directly to LCH SA (and not via a relevant DTCC 

Notice Facility), such notices may not be delivered by telephone.

7.3 Credit Event Notices and NEMOs 

(a) Credit Event Notices and NEMOs to be given via DTCC

Credit Event Notices and Notices to Exercise Movement Option shall be delivered by 

way of the relevant DTCC Notice Facility, save if and as expressly stated to the contrary 

in this Section 7 or expressly agreed by LCH SA. The deemed time of delivery of any 

such notices shall be as set out in the DTCC Rules from time to time.

(b) Credit Event Notices and NEMOs delivered in respect of CCM Client Transaction

If a Matched Buyer or a Matched Seller that is a CCM receives a valid Credit Event 

Notice or Notice to Exercise Movement Option from its CCM Client in respect of a CCM 

Client Transaction by way of the relevant DTCC Notice Facility, such notice shall be 

deemed also to be a Credit Event Notice or Notice to Exercise Movement Option (as 

applicable) for the purposes of the corresponding Matched Contracts of the 

Restructuring Matched Pair. 
LCH SA © 2021 74 Published on 30 July 2021[●]

7.4 Notification of DTCC Failure and Resolution

(a) LCH SA to notify Clearing Members of DTCC Failure Event

If DTCC notifies LCH SA or LCH SA otherwise becomes aware that the relevant DTCC 

Notice Facility is or will be unavailable to process all or substantially all Credit Event 

Notices or Notices to Exercise Movement Option, as applicable, with respect to a 

Restructuring Credit Event in a timely manner (a DTCC Failure Event), then LCH SA will, 

as soon as reasonably practicable and in any event within one hour of such notification 

or of LCH SA becoming aware of such non-availability, as applicable, notify all relevant 

Clearing Members of such occurrence, including the time at which such failure 

occurred (or, if LCH SA is not notified of such time by or on behalf of DTCC, the time at 

which LCH SA received the relevant notification from or on behalf of DTCC or becomes 

aware of the relevant non-availability) (the DTCC Failure Event Time). LCH SA shall also 

publish such information on its Website as soon as reasonably practicable after 

becoming aware of a DTCC Failure Event.

(b) LCH SA to notify Clearing Members of Resolution of DTCC Failure Event

If, subsequent to a DTCC Failure Event, DTCC (or a third party designated under the 

DTCC Rules from time to time) notifies LCH SA that a DTCC Failure Event previously 

notified to Clearing Members is no longer in effect, LCH SA will as soon as reasonably 

practicable notify all relevant Clearing Members accordingly, including the time (the 

DTCC Resolution Time) (which must be no earlier than 30 minutes following the time 

of such notification) at which such DTCC Failure Event is deemed to have been 

resolved and following which the relevant DTCC Notice Facility is operative for the 

purposes of delivery of relevant notices relating to Restructuring Cleared Transactions 

(including transactions in respect of which notices may have been delivered directly 

pursuant to Section 7.5 (Consequences of DTCC failure). LCH SA shall also publish such 

information on its Website as soon as reasonably practicable after notifying Clearing 

Members that the DTCC Failure Event is no longer in effect and of the DTCC Resolution 

Time.

(c) Notices given prior to DTCC Resolution Time to be confirmed to DTCC

LCH SA and, to the extent so requested by LCH SA, each Clearing Member shall, as 

soon as reasonably practicable and to the extent permitted by DTCC, provide or 

confirm to DTCC details of any relevant notices (in the case of a Clearing Member, 

being any relevant notices delivered directly by such Clearing Member) given in 

respect of Cleared Transactions prior to the DTCC Resolution Time, so as to permit 

delivery of subsequent notices in respect of such Cleared Transactions via the relevant 

DTCC Notice Facility.
LCH SA © 2021 75 Published on 30 July 2021[●]

7.5 Consequences of DTCC Failure

From (and including) the DTCC Failure Event Time to (but excluding) the DTCC Resolution 

Time:

(a) Section 7.3(a) (Credit Event Notices and NEMOs to be given via DTCC) shall not apply 

and accordingly Credit Event Notices and Notices to Exercise Movement Option shall 

be delivered directly (and not via the relevant DTCC Notice Facility);

(b) any notice delivered via the relevant DTCC Notice Facility prior to the DTCC Failure 

Event Time will be valid and will not be affected by such DTCC Failure Event; and

(c) any notice delivered or purported to be delivered via the relevant DTCC Notice Facility 

at or following the DTCC Failure Event Time but prior to the DTCC Resolution Time 

will not be valid and effective.

Section 7.3(a) (Credit Event Notices and NEMOs to be given via DTCC) shall apply with effect 

from the DTCC Resolution Time and, accordingly, any notice thereafter delivered or 

purported to be delivered directly (and not via the relevant DTCC Notice Facility) will not be 

valid and effective. 

7.6 Clearing Member Communications Failure Event 

(a) Right to deliver Notices manually following Clearing Member Communications 

Failure Event

If a Clearing Member is affected by a significant communications or information 

technology failure resulting in it being impossible or impractical for such Clearing 

Member to deliver any Credit Event Notice in relation to a Restructuring Credit Event 

or any Notice to Exercise Movement Option via a relevant DTCC Notice Facility (a 

Clearing Member Communications Failure Event) it may, notwithstanding Section 

7.3(a) (Credit Event Notices and NEMOs to be given via DTCC) deliver Credit Event 

Notices and Notices to Exercise Movement Option directly (and not via the relevant 

DTCC Notice Facility). 

(b) Clearing Member to notify LCH SA of Occurrence of Clearing Member 

Communications Failure Event

Following the occurrence of a Clearing Member Communications Failure Event, the 

affected Clearing Member shall, within one hour of delivering any Credit Event Notice 

or Notice to Exercise Movement Option directly, deliver to LCH SA a notice (in the form 

set out at Appendix IX hereto) signed by a senior officer (such as a managing director 

or equivalent) of such Clearing Member certifying that it is affected by a Clearing 

Member Communications Failure Event (or, if such Clearing Member is unable to 

deliver such notice in writing, orally by telephone). 

LCH SA shall notify all Clearing Members accordingly as soon as reasonably practicable 

and in any event within one hour of receipt of any such notification.
LCH SA © 2021 76 Published on 30 July 2021[●]

(c) Notices to Clearing Member affected by Clearing Member Communications Failure 

Event

For the avoidance of doubt, Section 7.3(a) (Credit Event Notices and NEMOs to be 

given via DTCC) shall continue to apply in respect of notices given to the affected 

Clearing Member by Clearing Members comprised in any Matched Pair in respect of 

which the affected Clearing Member is a Matched Buyer or Matched Seller.

(d) Notification of Resolution of Clearing Member Communications Failure Event

As soon as reasonably practicable upon a Clearing Member ceasing to be subject to a 

Clearing Member Communications Failure Event, it shall notify LCH SA accordingly (in 

the form set out at Appendix X hereto) and thereupon Section 7.3(a) (Credit Event 

Notices and NEMOs to be given via DTCC) shall apply and, accordingly, any Credit Event 

Notice or Notice to Exercise Movement Option thereafter delivered or purported to 

be delivered directly (and not via the relevant DTCC Notice Facility) will not be valid 

and effective.

(e) Clearing Member Duty to Mitigate

A Clearing Member which is subject to a Clearing Member Communications Failure 

Event shall use reasonable endeavours to mitigate the operational impact on other 

Clearing Members and LCH SA of any Clearing Member Communications Failure Event, 

to cure such Clearing Member Communications Failure Event as soon as possible and 

to ensure that the circumstances giving rise to the relevant Clearing Member 

Communications Failure Event do not recur. 

(f) Breach by Clearing Member does not Invalidate Valid Notices

Without prejudice to any other rights or remedy of LCH SA, any breach by a Clearing 

Member of the provisions of this Section 7.6 shall not cause any Credit Event Notice 

or Notice to Exercise Movement Option delivered otherwise than in accordance with 

the relevant Restructuring Cleared Transaction, which would otherwise be valid and 

effective, to be invalid or ineffective.

7.7 Clearing Member Acknowledgements

(a) Duty to deliver Clearing Member Acknowledgements

Each Clearing Member shall notify LCH SA or deliver a copy to LCH SA of any notice 

delivered or received by such Clearing Member to or from another Clearing Member 

comprised in a Matched Pair, including, without limitation, any Credit Event Notice or 

Notice to Exercise Movement Option which was delivered or received directly (and 

not via a DTCC Notice Facility) pursuant to Sections 7.5 (Consequences of DTCC Failure) 

or 7.6 (Clearing Member Communications Failure Event), and which such Clearing 

Member asserts or acknowledges was effective for the purposes of this CDS Clearing 

Supplement and the relevant Cleared Transactions (such notification, or delivery of 
LCH SA © 2021 77 Published on 30 July 2021[●]

such copy, in respect of any relevant notice, a Clearing Member Acknowledgement) 

by no later than 6.00 p.m. on: 

(i) in the case of a Notice of Physical Settlement or NOPS Amendment Notice, the 

date falling two Transaction Business Days following the date on which such 

notice was sent; or 

(ii) in the case of any other notice, on the last date on which such notice could 

validly be sent, 

(in each case, the Notice Acknowledgement Deadline).

(b) Clearing Member Acknowledgement received from both Clearing Members

Where LCH SA receives a Clearing Member Acknowledgement in respect of any notice 

from both relevant Clearing Members comprised in a Matched Pair at or prior to the 

Notice Acknowledgement Deadline, LCH SA shall perform its obligations in respect of 

the relevant Cleared Transactions in accordance with and subject to the remaining 

provisions of the CDS Clearing Documentation.

(c) Clearing Member Acknowledgement received from one Clearing Member

Where LCH SA receives a Clearing Member Acknowledgement in respect of any notice 

from one relevant Clearing Member only at or prior to the Notice Acknowledgement 

Deadline, the provisions of Section 7.11 (Disputes as to Notices) shall apply and LCH 

SA and each relevant Clearing Member shall perform their obligations in respect of 

the relevant Cleared Transactions in accordance with and subject to the remaining 

provisions of the CDS Clearing Documentation and the terms of any final resolution of 

the relevant dispute, as agreed between the relevant parties or as determined by 

arbitration or by litigation, as applicable, in accordance with the CDS Dispute 

Resolution Protocol, subject to the provisions of Sections 8 and 9 of the Procedures. 

In such case, LCH SA shall notify the Clearing Member from which it has not received 

a Clearing Member Acknowledgement of the asserted delivery or, as applicable, 

receipt of the relevant notice (in the case of a Credit Event Notice or Notice to Exercise 

Movement Option, through the reports referred to at Section 5.6 (Reports)). 

(d) No Clearing Member Acknowledgement received

Where LCH SA does not receive Clearing Member Acknowledgement or confirmation 

of valid delivery in respect of any notice from either Clearing Member in the relevant 

Matched Pair on or prior to the relevant Notice Acknowledgement Deadline, the rights 

and obligations of LCH SA as against each relevant Clearing Member, and vice versa, 

shall be construed as if no such notice had been given. 
LCH SA © 2021 78 Published on 30 July 2021[●]

(e) Consequences of no Clearing Member Acknowledgement being received

Where sub-section (d) above is applicable, the following provisions shall apply:

(i) Notices other than Notices of Physical Settlement and NOPS Amendment 

Notices 

Save in the case of a Notice of Physical Settlement or NOPS Amendment 

Notices, an amount shall be payable between the Clearing Members equal to 

the difference between the value of the Matched Buyer Contract had Clearing 

Member Acknowledgement been given to LCH SA on a timely basis and the 

value of such contract in the absence of such acknowledgement; such 

difference in value shall be determined as of the earlier of the day on which 

notice is given by any relevant Clearing Member that such amount is due and 

payable and, in the case of a Credit Event Notice or Notice to Exercise 

Movement Option, the eighth Transaction Business Day following the Auction 

Settlement Date, no Auction Announcement Date or Auction Cancellation 

Date, as applicable or otherwise the eighth Transaction Business Day following 

the last day on which such notice would validly have been delivered, by 

reference to the relevant Auction Settlement Amount or end of day 

contributed prices, in each case if available. 

(ii) Notices of Physical Settlement and NOPS Amendment Notices

Where the relevant notice is a Notice of Physical Settlement or a NOPS 

Amendment Notice, the relevant Clearing Members shall acquire rights as

against the other as though party to a bilateral credit default swap transaction 

on the terms of the related Matched Buyer Contract (including, without 

limitation, as to the satisfaction of the applicable Conditions to Settlement) and 

the Notice of Physical Settlement shall be deemed to have been given in 

respect of such transaction. Any resulting payment shall be due and payable 

two Transaction Business Days following the giving of a notice that such 

amount is due and payable.

In each case, the relevant Clearing Members shall have enforcement rights as against 

each other pursuant to the Contracts (Rights of Third Parties) Act 1994 in respect of 

any resulting payments and deliveries; LCH SA shall have no liability in respect thereof.

7.8 Failure to notify Matched Pairs

Notwithstanding Section 5.3 (Triggering of Restructuring Cleared Transactions) and 6.5

(Notices of Physical Settlement), if LCH SA does not notify the relevant Clearing Members of 

Restructuring Matched Pairs created pursuant to Section 5.1 (Creation and Notification of 

Restructuring Matched Pairs) on or prior to the RMP Notification Deadline or Settlement 

Matched Pairs and related information specified in Section 6.2 (Creation and Notification of 

Settlement Matched Pairs) by the SMP Notification Deadline, as applicable: 
LCH SA © 2021 79 Published on 30 July 2021[●]

(a) the relevant Clearing Members may deliver Credit Event Notices, Notices to Exercise 

Movement Option, Notices of Physical Settlement or NOPS Amendment Notices to 

LCH SA, and vice versa; 

(b) the relevant Cleared Transactions shall be subject to Physical Settlement in 

accordance with their terms; and 

(c) the provisions of Sections 2.4 (Amendments to 2003 ISDA Credit Derivatives 

Definitions), 6 (Physical Settlement) and 8 (Matched Pair Designations and Notices) 

shall not apply and the terms of this CDS Clearing Supplement shall be construed 

accordingly. 

For such purpose, Section 7.3 (Credit Event Notices and NEMOs) shall not apply in respect of 

notices given by the affected Clearing Members and accordingly Credit Event Notices and 

Notices to Exercise Movement Option shall be delivered directly (and not via the relevant 

DTCC Notice Facility).

7.9 Failure to notify Matching Information

If LCH SA notifies relevant Clearing Members of Restructuring Matched Pairs created 

pursuant to Section 5.1 (Creation and Notification of Restructuring Matched Pairs) on or prior 

to the RMP Notification Deadline, but does not notify DTCC of relevant Matching Information 

on or prior to the RMP Notification Deadline, then Section 7.3(a) (Credit Event Notices and 

NEMOs to be given via DTCC) shall not apply in respect of notices to be delivered by affected 

Clearing Members and accordingly Credit Event Notices and Notices to Exercise Movement 

Option shall be delivered directly as between Clearing Members (as designees of LCH SA) (and 

not via the relevant DTCC Notice Facility).

7.10 Uncertain Delivery

(a) Manual Notice permitted if Delivery of Notice in DTCC uncertain

Notwithstanding Section 7.3(a) (Credit Event Notices and NEMOs to be given via 

DTCC), where such notices are permitted to be delivered by means other than the 

relevant DTCC Notice Facility pursuant to this Section 7, and a Clearing Member is 

uncertain as to whether or not a Credit Event Notice or Notice to Exercise Movement 

Option (as applicable) it (or, in the case of a CCM, its CCM Client) attempted to deliver 

via a DTCC Notice Facility has: 

(i) actually been delivered; or 

(ii) was delivered prior to the DTCC Failure Time, 

that Clearing Member shall be entitled to deliver such a notice directly to any Clearing 

Member comprised in a relevant Matched Pair (as designee of LCH SA) specifying that 

such notice is only to be effective to the extent that the other purported notice is not 

effective. 
LCH SA © 2021 80 Published on 30 July 2021[●]

(b) Details to be provided of Uncertain Notice

If a Clearing Member delivers a manual notice pursuant to sub-section (a) (Manual 

Notice permitted if Delivery of Notice in DTCC uncertain) above, such Clearing Member 

shall be required to provide (together with such notice) sufficient details of the notice 

attempted to be given by way of the relevant DTCC Notice Facility so as to allow the 

other Clearing Member and LCH SA to identify the communication concerned. 

(c) DTCC Notice delivered successfully 

If the first Credit Event Notice or Notice to Exercise Movement Option (as applicable) 

to which the manual notice delivered pursuant to sub-section (a) (Manual Notice 

permitted if Delivery of Notice in DTCC uncertain) above relates was actually delivered 

successfully, any subsequent Credit Event Notice or Notice to Exercise Movement 

Option delivered shall be deemed not to have been delivered.

7.11 Disputes as to Notices

If any Clearing Member comprised in a Matched Pair where one such party is acting as 

designee of LCH SA disputes the effective delivery in accordance with the terms of the 

relevant Cleared Transactions of any notice delivered directly (and not via a relevant DTCC 

Notice Facility) in accordance with this Section 7 (Delivery of Notices and Fallbacks) (and for 

such purposes, a dispute between the relevant Clearing Member and LCH SA shall be deemed 

to have arisen if LCH SA receives a Clearing Member Acknowledgement from one relevant 

Clearing Member only in respect of any such notice as contemplated at Section 7.7(c)

(Clearing Member Acknowledgement received from one Clearing Member)):

(a) LCH SA shall be entitled in accordance with the Procedures to calculate and call for 

Margin with respect to each such Clearing Member on the basis of the maximum 

requirement for such Clearing Member that could result from any foreseeable 

outcome of such dispute;

(b) following final resolution of such dispute by arbitration or by litigation, as applicable, 

in accordance with the CDS Dispute Resolution Protocol, subject to the provisions of 

Sections 8 and 9 of the Procedures, the Clearing Members comprised in the relevant 

Matched Pair shall take such actions with respect to the Cleared Transactions the 

subject of such dispute as LCH SA determines appropriate to give effect to any 

relevant binding resolution; and

(c) without prejudice to its obligations upon final resolution of the dispute, pending final 

resolution of any such dispute, LCH SA shall not be obliged to take any step pursuant 

to the terms of the relevant Cleared Transactions which would be required to have 

been taken by it had the relevant notice been validly delivered.

Each relevant Clearing Member must promptly notify LCH SA of any such disputes (in the 

form set out at Appendix XI hereto).
LCH SA © 2021 81 Published on 30 July 2021[●]

8. MATCHED PAIR DESIGNATIONS AND NOTICES

8.1 Creation of Matched Pairs

LCH SA will create Matched Pairs where required to do so pursuant to Section 5.1 (Creation 

and Notification of Restructuring Matched Pairs) or 6.2 (Creation and Notification of 

Settlement Matched Pairs) using a matching procedure that matches CDS Sellers with CDS 

Buyers pursuant to an algorithm incorporating the following principles:

(a) the procedure seeks to create Matched Pairs between the same Clearing Member to 

the extent it is possible to do so before creating Matched Pairs between different 

Clearing Members and, for this purpose, in the context of CCMs, the procedure will 

create Matched Pairs separately for CCMs and their CCM Clients (individually where

the CCM Client is allocated to a single CCM Client Margin Account or together where 

a set of CCM Clients is allocated to a single CCM Client Margin Account) and Clearing 

Member will be construed accordingly;

(b) the procedure seeks to minimise the number of Matched Pairs (and accordingly, 

largest positions will be matched first);

(c) each Matched Pair will, to the extent possible, have an aggregate Restructuring 

Matched Pair Amount or, as applicable, Settlement Matched Pair Delivery Amount, 

which meets the criteria as set out in a Clearing Notice; and

(d) LCH SA will allocate a Restructuring Matched Pair Amount or, as applicable, 

Settlement Matched Pair Delivery Amount to each Matched Pair such that:

(i) the sum of all Restructuring Matched Pair Amounts or, as applicable, 

Settlement Matched Pair Delivery Amounts, of each CDS Buyer is equal to 

the aggregate Floating Rate Payer Calculation Amounts in respect of all (A) 

Initial Single Name Cleared Transactions, Restructuring Cleared Transactions 

(created following the occurrence of a previous Restructuring Credit Event), 

Spin-off Single Name Cleared Transactions and Resulting Single Name 

Cleared Transactions or (B) Cleared Transactions in respect of which the 

Fallback Settlement Method applies to the CDS Type for such Cleared 

Transaction, as applicable, to which such CDS Buyer is a party; and 

(ii) the sum of all Restructuring Matched Pair Amounts or, as applicable, 

Settlement Matched Pair Delivery Amounts, of each CDS Seller is equal to 

the aggregate Floating Rate Payer Calculation Amounts in respect of (A) 

Initial Single Name Cleared Transactions, Restructuring Cleared Transactions 

(created following the occurrence of a previous Restructuring Credit Event), 

Spin-off Single Name Cleared Transactions and Resulting Single Name 

Cleared Transactions or (B) Cleared Transactions in respect of which the 

Fallback Settlement Method applies to the CDS Type for such Cleared 

Transaction, as applicable, to which such CDS Seller is a party.
LCH SA © 2021 82 Published on 30 July 2021[●]

Notwithstanding the above, if the Fallback Settlement Method applies in relation to a Cleared 

Transaction and a Restructuring Credit Event, the Restructuring Matched Pairs previously 

created pursuant to Section 5.1 (Creation of Restructuring Matched Pairs) and this Section 

8.1 shall be deemed to be Settlement Matched Pairs created in accordance with Section 6.2

(Creation and Notification of Settlement Matched Pairs) and LCH SA shall have no obligation 

to create Settlement Matched Pairs in respect of such Cleared Transaction.

8.2 Registration of new Cleared Transactions and Removal of original Cleared Transactions

To the extent that any Cleared Transaction created pursuant to Section 5.2 (Creation of 

Restructuring Cleared Transactions) or Section 6.3 (Physically Settled Cleared Transactions) is 

not automatically registered in accordance with the DTCC Rules, LCH SA shall register such 

new Cleared Transaction in the TIW in accordance with the DTCC Rules prior to 6.00 p.m. on 

the date on which the RMP Notification Deadline or SMP Notification Deadline (as applicable) 

falls. In respect of CCMs and CCM Clients only, such registration by LCH shall also result in 

the automatic registration of any amendments made to the corresponding CCM Client 

Transactions. 

In addition, LCH SA will, on behalf of the relevant Clearing Member, send an “Exit” message 

to the TIW in accordance with the DTCC Rules to terminate and remove the corresponding 

original Cleared Transaction(s) from the TIW prior to 6.00 p.m. on the date on which the RMP 

Notification Deadline or SMP Notification Deadline (as applicable) falls.

8.3 Matched Buyer Contracts

In respect of each Matched Buyer Contract which is the subject of a Matched Pair, LCH SA, 

pursuant to Section 9.2(c)(iv) of the 2003 ISDA Credit Derivatives Definitions (amended as set 

out at Section 2.4 (Amendments to 2003 ISDA Credit Derivatives Definitions)), as designator, 

shall be deemed to have designated Matched Seller in such Matched Pair as its designee:

(a) to receive on its behalf from, and to deliver on its behalf to, Matched Buyer of the 

Matched Pair any applicable notices or certifications in accordance with the terms of 

the applicable Cleared Transaction (other than notices required to be delivered via a 

DTCC Notice Facility);

(b) other than in respect of the Physical Settlement Amount relating to the settlement of 

Non-DVP Obligations as referred to in Section 6.6 (Delivery of Non-DVP Obligations), 

to pay on behalf of LCH SA any applicable Physical Settlement Amount in accordance 

with the terms of the applicable Physically Settled Cleared Transaction, and to pay to, 

and to receive from, Matched Buyer of the Matched Pair, in each case, on behalf of 

LCH SA, any other amounts due and payable (including costs and expenses of 

settlement due under the applicable Matched Buyer Contract); and

(c) to take Delivery, on behalf of LCH SA, of Deliverable Obligations from Matched Buyer 

of the Settlement Matched Pair.
LCH SA © 2021 83 Published on 30 July 2021[●]

The relevant Matched Seller shall be deemed to have accepted such designation upon 

notification of the relevant Matched Pair created and notified in accordance with the 

provisions of this CDS Clearing Supplement.

8.4 Matched Seller Contracts

In respect of each Matched Seller Contract which is the subject of a Matched Pair, LCH SA, 

pursuant to Section 9.2(c)(iv) of the 2003 ISDA Credit Derivatives Definitions (as amended 

pursuant to Section 2.4 (Amendments to 2003 ISDA Credit Derivatives Definitions) above), as 

designator, shall be deemed to have designated Matched Buyer in such Matched Pair as its 

designee:

(a) to receive on its behalf from, and to deliver on its behalf to, Matched Seller of the 

Matched Pair any applicable notices or certifications in accordance with the terms of 

the applicable Cleared Transaction (other than notices required to be delivered via a 

DTCC Notice Facility);

(b) other than in respect of any Physical Settlement Amount relating to the settlement 

of Non-DVP Obligations as referred to in Section 6.6 (Delivery of Non-DVP 

Obligations), to receive on behalf of LCH SA the applicable Physical Settlement 

Amount in accordance with the terms of any applicable Physically Settled Cleared 

Transaction, and to pay to, and to receive from, Matched Seller of the Matched Pair, 

in each case, on behalf of LCH SA, any other amounts due and payable (including costs 

and expenses of settlement due under the Matched Seller Contract); and

(c) to Deliver, on behalf of LCH SA, the relevant Deliverable Obligations to Matched Seller 

of the Settlement Matched Pair.

The relevant Matched Buyer shall be deemed to have accepted such designation upon 

notification of the relevant Matched Pair created and notified in accordance with the 

provisions of this CDS Clearing Supplement.

8.5 Exercise of Rights

In relation to each Matched Pair:

(a) the exercise of any rights by Matched Buyer against LCH SA under a Matched Buyer 

Contract (other than the right to give any notice via DTCC Notice Facility) shall be 

deemed to constitute the exercise of equal and simultaneous rights by LCH SA against 

Matched Seller under the Matched Seller Contract of the relevant Matched Pair; and

(b) the exercise of any rights by Matched Seller against LCH SA under a Matched Seller 

Contract (other than a right to give notice under a DTCC Notice Facility) shall be 

deemed to constitute the exercise of equal and simultaneous rights by LCH SA against 

Matched Buyer under the Matched Buyer Contract of the relevant Matched Pair.
LCH SA © 2021 84 Published on 30 July 2021[●]

8.6 Clearing Member matched with Itself

(a) Notices

In the event that: 

(i) Matched Buyer and Matched Seller of a Matched Pair pursuant to this Section 

8 (Matched Pair Designations and Notices) is the same Clearing Member; and

(ii) notwithstanding Section 7.3(a) (Credit Event Notices and NEMOs to be given via 

DTCC), a notice or certification is permitted to be delivered in respect of one of 

the Cleared Transactions forming part of such Matched Pair by means other 

than the relevant DTCC Notice Facility pursuant to Section 7 (Delivery of Notices 

and Fallbacks),

such notice shall be deemed to be given upon such Clearing Member sending a 

Clearing Member Acknowledgement to LCH SA pursuant to Section 7.7(a) (Duty to 

deliver Clearing Member Acknowledgements) above in respect of such notice and 

Section 7.7(b) (Clearing Member Acknowledgement received from both Clearing 

Members) shall apply.

(b) Payments and Deliveries

In the event that: 

(iii) Matched Buyer and Matched Seller of a Matched Pair pursuant to this Section 

8 (Matched Pair Designations and Notices) is the same Clearing Member; and

(iv) such Clearing Member is required to make a payment or delivery pursuant to 

the terms of one of the Cleared Transactions forming part of such Matched Pair 

as designate of LCH SA,

such payment or delivery shall be deemed to have been made upon such Clearing 

Member giving notice to LCH SA in accordance with Section 7.1 (General Rules relating 

to Notices) that such payment or delivery should be deemed to have been made for 

the purposes of such Cleared Transaction.

8.7 Notices

In relation to each Matched Pair:

(a) where Matched Buyer validly delivers or serves any notice to Matched Seller as 

designee of LCH SA in accordance with the terms of a relevant Matched Buyer 

Contract, such notice shall additionally be effective as a notice given by such Matched 

Buyer as designee of LCH SA to Matched Seller for the purposes of the relevant 

Matched Seller Contract; and

(b) where Matched Seller validly delivers or serves any notice to Matched Buyer as 

designee of LCH SA in accordance with the terms of a relevant Matched Seller 
LCH SA © 2021 85 Published on 30 July 2021[●]

Contract, such notice shall additionally be effective as a notice given by such Matched 

Seller as designee of LCH SA to Matched Buyer for the purposes of the relevant 

Matched Buyer Contract.

9. SELF-REFERENCING TRANSACTIONS

9.1 Occurrence of Clearing Member Self Referencing Transaction

(a) Duty to notify

In respect of a Single Name Cleared Transaction that is registered in the House 

Account Structure of a Clearing Member, the relevant Clearing Member shall, unless 

prohibited from so doing by applicable law or its internal policies, notify LCH SA as 

soon as reasonably practicable if:

(i) such Clearing Member is or consolidates or amalgamates with, or merges into, 

or transfers all or substantially all of its assets to, the Reference Entity in 

relation to such Single Name Cleared Transaction, or enters into any agreement 

in respect of any of the foregoing;

(ii) such Clearing Member and the Reference Entity in relation to such Single Name 

Cleared Transaction are or become Affiliates; or

(iii) in respect of a Restructuring Cleared Transaction, such Clearing Member is or 

becomes the Reference Entity in relation to such Restructuring Cleared 

Transaction as a result of the occurrence of the relevant Restructuring Credit 

Event.

(b) Auction of Affected Transactions

Following receipt of any such notification or occurrence of a Clearing Member Self 

Referencing Transaction due to a registration of Transfer Positions under Clause 6 of 

the CDS Default Management Process or a transfer of Client Cleared Transactions to 

the House Trade Account under TITLE V, Chapter 4 or TITLE VI, Chapter 4 of the CDS 

Clearing Rule Book, LCH SA will, unless otherwise agreed in consultation with the CDS 

Default Management Group and the affected Clearing Member, and with the 

assistance of the CDS Default Management Group, conduct an auction process to 

liquidate the relevant Single Name Cleared Transaction and enter into an equivalent 

Single Name Cleared Transaction with a Clearing Member other than the affected 

Clearing Member. 

(c) Alternative Action

If LCH SA, after consultation with the CDS Default Management Group and the 

affected Clearing Member, believes that the circumstances are such that an auction 

may be inappropriate, LCH SA may take such other action in consultation with the Risk 

Committee as it considers reasonably necessary to achieve its primary aim in these 

circumstances of addressing the risks resulting from a Clearing Member being party 
LCH SA © 2021 86 Published on 30 July 2021[●]

to a Clearing Member Self Referencing Transaction, while endeavouring, as far as is 

reasonably practicable in the circumstances without prejudicing the achievement of 

the primary aim, to avoid materially and adversely affecting the relevant Clearing 

Member.

(d) Compression of Affected Transactions prior to Auction

Prior to determining the Single Name Cleared Transactions to be subject to any 

auction pursuant to paragraph (b) above, where the affected Clearing Member acts 

as CDS Buyer and CDS Seller in respect of fungible Single Name Cleared Transactions, 

LCH SA shall, in consultation with the CDS Default Management Committee as to the 

transaction sizes of resulting Single Name Cleared Transactions to be auctioned, 

compress such Single Name Cleared Transactions up to the extent that, following such 

compression, Single Name Cleared Transactions representing in aggregate the Open 

Position of the affected Clearing Member in respect of such fungible Single Name 

Cleared Transactions are recognised. 

For these purposes, LCH SA will provide the affected Clearing Member with a report 

detailing the Single Name Cleared Transactions to be subject to such compression. 

The affected Clearing Member will be deemed to have submitted a request to LCH SA 

prior to 5.00 p.m. on the day on which LCH SA carries out the compression for ad hoc 

compression of such Single Name Cleared Transactions in accordance with Section 5 

of the Procedures and such compression shall be carried out in accordance with 

Section 5 of the Procedures on the basis of such deemed request for ad hoc 

compression.

(e) Auction Terms

LCH SA shall determine the timing and other particular characteristics of each such 

auction in consultation with the CDS Default Management Committee, including 

determining the size of the bid/offer spread and/or of the Single Name Cleared 

Transactions to be auctioned, whether one or more such auctions are to be held and 

the timing and structure of such auctions (including the frequency at which firm bid 

and firm offer quotations will be requested and the transaction size (that is, the 

Floating Rate Payer Calculation Amount)). 

Clearing Members (excluding the affected Clearing Member) may be requested, and 

will not be required, to submit actionable quotations in such an auction.

(f) Creation of New Transactions and Termination of Existing Transactions

LCH SA will enter into Single Name Cleared Transactions with Clearing Members, other 

than the affected Clearing Member, in the amount and at the prices determined 

pursuant to such auction. 

At the time of entering into such Single Name Cleared Transactions, the corresponding 

Single Name Cleared Transactions of the affected Clearing Member shall be 
LCH SA © 2021 87 Published on 30 July 2021[●]

terminated by reference to the prices at which LCH SA enters into such new Single 

Name Cleared Transactions. 

The affected Clearing Member, LCH SA and the other Clearing Members, as applicable, 

shall submit such information as is required in accordance with the DTCC Rules so as 

to reflect the terms of any reduction to, termination of or entry into of any Single 

Name Cleared Transaction as a result of any such auction(s). 

(g) Costs of LCH SA

The affected Clearing Member will bear the cost of the associated bid/offer spread 

and any reasonable out-of-pocket costs and expenses of LCH SA in connection with 

such auction(s) and its entering into such new Single Name Cleared Transactions. 

(h) LCH SA to determine Amounts Owed and Payable

Amounts owed by the affected Clearing Member to, or receivable by it from, LCH SA 

in connection with any such auction shall be determined by LCH SA. 

In addition, any amounts payable (and the dates of settlement with respect thereto) 

relating to any Single Name Cleared Transactions created, reduced or terminated 

pursuant to any such auction shall be determined by LCH SA.

9.2 Occurrence of Client Self Referencing Transactions

(a) Notification

In respect of a Single Name Cleared Transaction registered in the Client Account 

Structure of a Clearing Member, the relevant Clearing Membershall, unless prohibited 

from so doing by applicable law or its internal policies, notify LCH SA as soon as 

reasonably practicable if it receives a notice from the relevant Client that:

(i) the Client is or has consolidated or amalgamated with, or merged into, or has 

transferred all or substantially all of its assets to, the Reference Entity in 

relation to such Single Name Cleared Transaction or entered into any 

agreement in respect of any of the foregoing;

(ii) the Client and the Reference Entity in relation to such Single Name Cleared 

Transaction are or have become Affiliates; or

(iii) in respect of a Restructuring Cleared Transaction, the Client is or has become 

the Reference Entity in relation to such Restructuring Cleared Transaction as a 

result of the occurrence of the relevant Restructuring Credit Event.
LCH SA © 2021 88 Published on 30 July 2021[●]

(b) Auction Process

Following the giving of any such notification:

(i) LCH SA will, unless otherwise agreed in consultation with the CDS Default 

Management Group and the relevant Clearing Member, conduct an auction 

process in consultation with the CDS Default Management Group and the 

relevant Clearing Member, to liquidate the relevant Single Name Cleared 

Transaction and enter into an equivalent Single Name Cleared Transaction with 

another Clearing Member; and

(ii) the provisions of Section 9.1 (Occurrence of Clearing Member Self Referencing 

Transaction) will apply mutatis mutandis, provided that:

(A) Section 9.1(a) (Duty to Notify) and 9.1(b) (Auction of Affected 

Transactions) shall not apply;

(B) Section 9.1(d) (Compression of Affected Transactions prior to Auction) is 

amended by deleting the words "to paragraph (b) above" and replacing 

them with the words "as a result of Section 9.2 (Occurrence of Client Self 

Referencing Transactions)";

(C) Section 9.1(d) (Compression of Affected Transactions prior to Auction) is 

amended in the case of CCM Clients only by inserting the words "that 

have a corresponding CCM Client Transaction with the affected CCM 

Client" immediately after the words "in respect of fungible Single Name 

Cleared Transactions";

(D) Section 9.1(e) (Auction Terms) is amended by deleting the words

“(excluding the affected Clearing Member)” in the final paragraph 

thereof;

(E) Section 9.1(f) (Creation of New Transactions and Termination of Existing 

Transactions) is amended by deleting the words "other than the 

affected Clearing Member" in the first paragraph thereof; and

(F) Each reference to "affected Clearing Member" in Section 9.1 

(Occurrence of Clearing Member Self Referencing Transaction) is deleted 

and replaced with a reference to "relevant Clearing Member".

(c) Costs of LCH SA

The cost of the associated bid/offer spread and any reasonable out-of-pocket costs 

and expenses of LCH SA in connection with such auction(s) or any alternative action 

shall be allocated to the CCM Client Collateral Account or the FCM/BD Client Collateral 

Account as applicable.
LCH SA © 2021 89 Published on 30 July 2021[●]

10. MANDATORY PROVISIONS FOR CCM CLIENT TRANSACTIONS

In Appendix XIII, certain provisions are set-out (the "Mandatory Provisions") for 

incorporation into a CCM Client Transaction between a CCM and its CCM Client that 

corresponds to a CCM Client Cleared Transaction registered in the CCM Client Trade Account 

in the name of such CCM for such CCM Client. The CDS Clearing Supplement and these 

Mandatory Provisions have been drafted so as to complement each other. 

LCH SA shall not be responsible for any loss suffered or expense incurred by a CCM or any 

CCM Client as a result of the inclusion or non-inclusion of the Mandatory Provisions in the 

CCM Client Transaction Documents.

11. AMENDMENTS

LCH SA may amend the provisions of this CDS Clearing Supplement (including, without 

limitation, the Mandatory Provisions) from time to time so as to comply with any legal or 

regulatory developments or any recommendations adopted by the industry in respect of CDS 

or Cleared Transactions or CCM Client Transactions, as applicable, or so as to reflect any 

technological advancements, in each case in accordance with the provisions of Section 1.2.2 

(Modification) of Chapter 2 (General Provisions) of the CDS Clearing Rule Book. 

12. FORMS OF NOTICES

A form of Credit Event Notice, Notice to Exercise Movement Option, Notice of Physical 

Settlement, NOPS Amendment Notice, notice to exercise alternative delivery procedure 

pursuant to Section 6.7 (Alternative Delivery Procedure), notice to fallback to Cash 

Settlement in respect of Non-Deliverable Obligations pursuant to Section 6.12 (Fallback to 

Cash Settlement in respect of Non-Deliverable Obligations), Physical Settlement 

Confirmation, No Physical Settlement Confirmation, notice of Clearing Member 

Communications Failure Event and where no longer subject to a Clearing Member 

Communications Failure Event, in each case pursuant to Section 7.6 (Clearing Member 

Communications Failure Event), notice of dispute relating to any Matched Pair as 

contemplated by Section 7 (Dispute as to Notices) and notice relating to Self-Referencing 

Transactions as contemplated by Section 9 (Self-Referencing Transactions) is set out in 

Appendix I, II, III, IV, V, VI, VII, VIII, IX, X, XI and XII respectively hereto. 

Any of the above referenced notices shall be delivered in substantially the form appended 

hereto, provided, for the avoidance of doubt, that such notices may refer to multiple 

transactions and may have certain firm-specific variations.

For the avoidance of doubt, the above referenced notices shall be governed by and construed 

in accordance with English law.
LCH SA © 2021 90 Published on 30 July 2021[●]

13. EXCLUSION OF LIABILITY

Without prejudice to the provisions of Article 1.2.10.3 of the CDS Clearing Rule Book:

(a) No liability for Failure of Designee to perform in respect of Matched Pair

Without prejudice to its obligations under or in respect of a Cleared Transaction, LCH 

SA shall not be liable for any loss or cost arising out of any failure of any Clearing 

Member comprised in a Matched Pair to perform its obligations as designee of LCH SA 

against a related Matched Buyer or Matched Seller, as applicable. 

(b) No liability for Fault of Third Party or Force Majeure

LCH SA shall have no liability to any person where Restructuring Cleared Transactions 

are not or are improperly created, Restructuring Cleared Transactions are not or are 

improperly terminated or the Movement Option process is not or is improperly 

implemented, in each case for the purposes of the DTCC Rules, because of a third 

party’s fault or a force majeure event. In particular, LCH SA shall not incur any liability 

arising as a result of any action or omission of DTCC. 

(c) No Obligation to verify Notices received

LCH SA shall have no responsibility to verify the contents of any notice received by it 

from any Clearing Member under the terms of any Cleared Transaction. 

14. DISPUTE RESOLUTION

For the avoidance of doubt, all Disputes shall be referred to and finally resolved by arbitration 

or by litigation, as applicable, in accordance with the CDS Dispute Resolution Protocol, subject 

to the provisions of Sections 8 and 9 of the Procedures.

15. GOVERNING LAW

For the avoidance of doubt, the governing law applicable to this CDS Clearing Supplement 

(excluding the Mandatory Provisions to the extent that such terms are incorporated by 

reference in the CCM Client Transaction Documents entered into between a CCM and its CCM 

Client in respect of a CCM Client Transaction), the 2003 ISDA Credit Derivatives Definitions 

and any Cleared Transactions (and any related definitions or Clearing Notices issued in 

respect of the CDS Clearing Supplement, the 2003 ISDA Credit Derivatives Definitions or any 

Cleared Transactions) and any non-contractual obligations arising out of, relating to or having 

any connection with them shall be as set out in Section 1.2.14 (Governing Law) of the CDS 

Clearing Rule Book.
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Page 91 of 429

APPENDIX I: FORM OF CREDIT EVENT NOTICE

To: [Restructuring Matched Pair Counterparty Address and Contact Information]

[To/Copy to:]

LCH SA

18, rue du Quatre Septembre

75002 Paris

France

[Contact details]

CREDIT EVENT NOTICE: 

Credit Derivative Transaction Details: As set out in the Schedule hereto1.

Reference is made to the Credit Derivative Transaction[s] described in the Schedule hereto (the 

Transaction[s]). Capitalised terms used and not otherwise defined in this letter shall have the 

meanings given them in the confirmation of the relevant Transaction. 

This letter is our Credit Event Notice to you that a [insert type] Credit Event occurred with respect to 

[insert name of Reference Entity] on or about [insert date], when [describe Credit Event].

Nothing in this letter shall be construed of a waiver of any rights we may have with respect to the 

Transaction.

Sincerely 

[Clearing Member]

________________________

Name:

Title:

1 A single Credit Event Notice may be submitted for multiple trades in respect of the same Counterparty
File No. SR-LCH SA-2022-004

Page 92 of 429

SCHEDULE

Credit Derivative Transaction Details

[Clearing 

Member] acting 

as Seller/Buyer

Restructuring 

Matched Pair ID

Trade ID Reference 

Entity

Trade Date Effective 

Date

Exercise 

Amount2

[Seller]

[Buyer]

[⚫] [⚫] [⚫] [⚫] [⚫] [⚫]

2 Where different to the outstanding Floating Rate Payer Calculation Amount
APPENDIX II: FORM OF NOTICE TO EXERCISE MOVEMENT OPTION

To: [Restructuring Matched Pair Counterparty Address and Contact Information]

[To/Copy to:]

LCH SA

18, rue du Quatre Septembre

75002 Paris

France

[Contact details]

Dear Sir/Madam 

Notice to Exercise Movement Option

Credit Derivative Transaction Details: As set out in the Schedule hereto3.

Reference is made to: (a) the Credit Derivative Transaction[s] described in the Schedule hereto (the 

Transaction[s]) between [ ], as Seller, and [ ], as Buyer; (b) the Credit Event Notice dated insert 

date], previously delivered to you on [insert date]; and (c) the occurrence of the No Auction 

Announcement Date on [insert date] pursuant to Section 12.12(b) of the 2003 ISDA Credit Derivatives 

Definitions, as supplemented by the 2009 ISDA Credit Derivatives Determinations Committees, 

Auction Settlement and Restructuring Supplement to the 2003 ISDA Credit Derivatives Definitions 

(published on July 14, 2009) (the Definitions).

This letter constitutes a Notice to Exercise Movement Option. Any capitalised term not otherwise 

defined in this letter will have the meaning, if any, assigned to such term in the confirmation of the 

relevant Transaction or, if no meaning is specified therein, in the Definitions.

We hereby exercise the Movement Option, confirm that each Transaction will be settled in accordance 

with the relevant Credit Derivatives Auction Settlement Terms specified in the column entitled 

"Auction Settlement Terms" corresponding to such Transaction in the Schedule hereto and require 

performance by you in accordance therewith.

Yours faithfully,

[Matched Buyer/Matched Seller]

________________________

Name:

Title:

3 A single Notice to Exercise Movement Option may be submitted for multiple trades in respect of the same 

Counterparty
SCHEDULE

Credit Derivative Transaction Details

Restructuring 

Matched Pair ID

Trade ID Reference 

Entity

Trade Date Effective Date Auction 

Settlement 

Terms

[⚫] [⚫] [⚫] [⚫] [⚫] [⚫]
APPENDIX III: FORM OF NOTICE OF PHYSICAL SETTLEMENT

To: Settlement Matched Pair Matched Seller Address and Contact Information

Copy to:

LCH SA

18, rue du Quatre Septembre

75002 Paris

France

[Contact details]

Notice of Physical Settlement

Credit Derivative Transaction Details: As set out in the Schedule hereto4.

Reference is made to: (a) the Credit Derivative Transaction[s] described in the Schedule hereto (the 

Transaction[s]) between [ ], as Seller, and [ ], as Buyer. Reference is also made to the Credit 

Event Notice [and Notice of Publicly Available Information] dated [insert date], previously delivered to 

you on [insert date].

This letter constitutes a Notice of Physical Settlement. Any capitalised term not otherwise defined in 

this letter will have the meaning, if any, assigned to such term in the confirmation of the relevant 

Transaction (the Relevant Confirmation) or, if no meaning is specified therein, in the 2003 ISDA Credit 

Derivatives Definitions, as supplemented by the 2009 ISDA Credit Derivatives Determinations 

Committees, Auction Settlement and Restructuring Supplement to the 2003 ISDA Credit Derivatives 

Definitions (published on July 14, 2009) (the Definitions).

We hereby confirm that we will settle the Transaction[s] and require performance by you in 

accordance with the provisions of the Relevant Confirmation and the Definitions relating to Physical 

Settlement. Subject to the terms of the relevant Transaction, we will Deliver to you on or before the 

Physical Settlement Date, an amount of the Deliverable Obligation(s) described in the column entitled 

"Deliverable Obligation(s)" in the Schedule hereto, corresponding to such Transaction:

[Further, in respect of each Transaction[s] we identify those Enabling Obligation(s) described in the 

column entitled "Enabling Obligation(s)" in the Schedule hereto, corresponding to such Transaction:]

Yours faithfully,

[Matched Buyer]

________________________

Name:

Title:

4 A single Notice of Physical Settlement may be submitted for multiple trades in respect of the same Counterparty
SCHEDULE

Credit Derivative Transaction Details

Settlement Matched 

Pair ID

Trade ID Reference Entity Trade Date Effective Date Deliverable 

Obligation(s)5

Enabling 

Obligation(s)6]

[⚫] [⚫] [⚫] [⚫] [⚫] [Currency][Due and 

Payable Amount]][⚫]

[⚫]

5 describe the Deliverable Obligation(s) to be Delivered, including the currency and Outstanding Principal Balanceor Due and Payable Amount for each such Deliverable 

Obligation and, if available and applicable, the CUSIP or ISIN number (or, if such identifying number is not available, the rate and tenor of the Deliverable Obligation)

6 describe each such Enabling Obligation, including the CUSIP or ISIN number, if available and applicable (or, if such identifying number is not available, the rate and tenor), of 

such Enabling Obligation, or any other information necessary to establish that such obligation is an Enabling Obligation.
APPENDIX IV: FORM OF NOPS AMENDMENT NOTICE

To: Settlement Matched Pair Matched Seller Address and Contact Information

Copy to:

LCH SA

18, rue du Quatre Septembre

75002 Paris

France

[Contact details]

Settlement Matched Pair ID: [⚫]

Trade ID: [⚫]

NOPS Amendment Notice

Credit Derivative Transaction Details: [Trade Date], [Effective Date], [Reference Entity]

Reference is made to the Credit Derivative Transaction described above (the Transaction) between [ 

], as Seller, and [ ], as Buyer. Reference is also made to the Notice of Physical Settlement] 

NOPS Amendment Notice] dated [insert date], previously delivered to you on [insert date] dated 

[insert date].

This letter constitutes a NOPS Amendment Notice. Any capitalised term not otherwise defined in this 

letter will have the meaning, if any, assigned to such term in the Confirmation of the Transaction or, 

if no meaning is specified therein, in the CDS Clearing Supplement.

We hereby notify you that we are replacing the following Deliverable Obligation(s) specified in the 

Notice of Physical Settlement] NOPS Amendment Notice] specified above with the following 

Replacement Deliverable Obligation(s):

[describe the Deliverable Obligation(s) to be replaced, including the Replaced Deliverable Obligation 

Outstanding Amount for each such Deliverable Obligation and, if available and applicable, the CUSIP 

or ISIN number (or, if such identifying number is not available, the rate and tenor of the Deliverable 

Obligation) and the Replacement Deliverable Obligation(s) for each Replaced Deliverable Obligation 

Outstanding Amount so specified and, if available and applicable, the CUSIP or ISIN number (or, if such 

identifying number is not available, the rate and tenor of the Replacement Deliverable Obligation)].

Yours faithfully,

[Matched Buyer]

________________________

Name:

Title:
APPENDIX V: FORM OF NOTICE TO EXERCISE ALTERNATIVE DELIVERY PROCEDURE PURSUANT TO 

SECTION 6.7 (ALTERNATIVE DELIVERY PROCEDURE)

To:

LCH SA

18, rue du Quatre Septembre

75002 Paris

France

[Contact details]

[date]

Dear Sir/Madam 

Notice to Exercise Alternative Delivery Procedure7

Reference is made to: the Settlement Matched Pairs described in the Schedule hereto, being the 

Settlement Matched Pairs to which this notice relates and Section 6.7 (Alternative Delivery Procedure) 

of the CDS Clearing Supplement. Defined terms shall have the meanings assigned to them in the CDS 

Clearing Supplement, unless otherwise defined herein.

The Settlement Matched Pair Delivery Amount relating to each Settlement Matched Pair is that 

amount specified in the column entitled "Settlement Matched Pair Delivery Amount" in the Schedule 

hereto, corresponding to such Settlement Matched Pair.

In respect of each Settlement Matched Pair and in accordance with Section 6.7 (Alternative Delivery 

Procedure) we hereby elect to exercise our rights against and perform obligations to you in accordance 

with the alternative delivery procedure in relation to such percentage and amount of the Settlement 

Matched Pair Delivery Amount as set out in the column entitled "Percentage and Amount of 

Settlement Matched Pair Delivery Amount" in the Schedule hereto corresponding to such Settlement 

Matched Pair.

This notice may be executed in any number of counterparts which togethershall constitute one notice. 

By countersigning this notice, you are deemed to have given your consent to the above in satisfaction 

of the requirement to obtain your consent contained in Section 6.7 (Alternative Delivery Procedure) 

of the CDS Clearing Supplement.

This notice (and any dispute, controversy, proceedings or claim of whatever nature arising out of or in 

any way relating to this agreement or its formation) shall be governed by and construed in accordance 

with English law.

Yours faithfully,

[Matched Buyer/ Matched Seller]

7 A single Notice to Exercise Alternative Delivery Procedure may be submitted for multiple trades in respect of the 

same Counterparty
________________________

Name:

Title:

Countersigned by LCH SA

________________________

Name:

Title:
SCHEDULE

Credit Derivative Transaction Details

Settlement Matched 

Pair ID

Trade ID Reference Entity Trade Date Effective Date Settlement Matched 

Pair Delivery 

Amount 

Percentage and 

amount of 

Settlement Matched 

Pair Delivery 

Amount

[⚫] [⚫] [⚫] [⚫] [⚫] [⚫] [⚫]
APPENDIX VI: FORM OF NOTICE OF FALLBACK TO CASH SETTLEMENT OF NON-DELIVERABLE 

OBLIGATIONS PURSUANT TO SECTION 6.12 (FALLBACK TO CASH SETTLEMENT IN RESPECT OF NONDELIVERABLE OBLIGATIONS)

To: Settlement Matched Pair Matched Seller Address and Contact Information

To:

LCH SA

18, rue du Quatre Septembre

75002 Paris

France

[Contact details]

Settlement Matched Pair ID: [⚫]

Trade ID: [⚫]

Dear Sir/Madam 

Notice of fallback to Cash Settlement in respect of Non-Deliverable Obligations pursuant to Section 

6.12 (Fallback to Cash Settlement in respect of Non-Deliverable Obligations) of the CDS Clearing 

Supplement

Reference is made to Section 6.12 (Fallback to Cash Settlement in respect of Non-Deliverable 

Obligations) of the CDS Clearing Supplement and [insert details of the relevant Settlement Matched 

Pair(s)], being the Settlement Matched Pair[s] to which this notice relates and to the [Notice of 

Physical Settlement][NOPS Amendment Notice] previously delivered to you on [insert date] dated 

[insert date]. Defined terms shall have the meanings assigned to them in the CDS Clearing Supplement, 

unless otherwise defined herein.

In accordance with Section 6.12 (Fallback to Cash Settlement in respect of Non-Deliverable 

Obligations) of the CDS Clearing Supplement we hereby notify you we are not permitted to Deliver 

the Deliverable Obligations specified below (such Deliverable Obligations, the Non-Deliverable 

Obligations) as specified in the [Notice of Physical Settlement][NOPS Amendment Notice] specified 

above for the following reasons:

[Insert details of the relevant Non-Deliverable Obligations and reasonable detail of the relevant 

circumstances, as described paragraphs (a)(i) and (a)(ii) of Section 6.12 of the CDS Clearing 

Supplement].

This notice (and any dispute, controversy, proceedings or claim of whatever nature arising out of or in 

any way relating to this agreement or its formation) shall be governed by and construed in accordance 

with English law.

Yours faithfully,
[Matched Buyer]

________________________

Name:

Title:
APPENDIX VII: FORM OF PHYSICAL SETTLEMENT CONFIRMATION AS CONTEMPLATED BY SECTION 

6.19 (MISCELLANEOUS PROVISIONS RELATING TO PHYSICAL SETTLEMENT)

To:

LCH SA

18, rue du Quatre Septembre

75002 Paris

France

[Contact details]

[date]

Dear Sir/Madam 

Physical Settlement Confirmation

Reference is made to Section 6.19(b) (Notification of Completion of Physical Settlement) of the CDS 

Clearing Supplement and the Settlement Matched Pair[s] described in the Schedule hereto, being the 

Settlement Matched Pair[s] to which this notice relates. Defined terms shall have the meanings 

assigned to them in the CDS Clearing Supplement, unless otherwise defined herein.

In accordance with Section 6.19(b) (Notification of Completion of Physical Settlement) of the CDS 

Clearing Supplement, we hereby notify you that we have completed Physical Settlement with respect 

to such Settlement Matched Pair[s].

This notice is delivered in satisfaction of the requirement in Section 6.19(b) (Notification of Completion 

of Physical Settlement) of the CDS Clearing Supplement to inform you of such completion.

This notice (and any dispute, controversy, proceedings or claim of whatever nature arising out of or in 

any way relating to this agreement or its formation) shall be governed by and construed in accordance 

with English law.

Yours faithfully,

[Matched Buyer]/[Matched Seller]

________________________

Name:

Title:
SCHEDULE

Settlement Matched Pair Details

Settlement Matched 

Pair ID

Trade ID Reference Entity Trade Date Effective Date

[⚫] [⚫] [⚫] [⚫] [⚫]
APPENDIX VIII: FORM OF NO PHYSICAL SETTLEMENT CONFIRMATION AS CONTEMPLATED BY 

SECTION 6.19 (MISCELLANEOUS PROVISIONS RELATING TO PHYSICAL SETTLEMENT)

To:

LCH SA

18, rue du Quatre Septembre

75002 Paris

France

[Contact details]

[date]

Settlement Matched Pair ID: [⚫]

Trade ID: [⚫]

Dear Sir/Madam 

No Physical Settlement Confirmation

Reference is made to Section 6.19(c) (Notification that Physical Settlement will not occur) of the CDS 

Clearing Supplement and the Settlement Matched Pair[s] described in the Schedule hereto, being the 

Settlement Matched Pair[s] to which this notice relates. Defined terms shall have the meanings 

assigned to them in the CDS Clearing Supplement, unless otherwise defined herein.

In accordance with Section 6.19(c) (Notification that Physical Settlement will not occur) of the CDS 

Clearing Supplement, we hereby notify you that no Notice of Physical Settlement has been delivered 

within the relevant time period permitted for such delivery in accordance with the terms of the 

relevant Physically Settled Cleared Transactions and, accordingly, that Physical Settlement will not, 

under the terms of such Physically Settled Cleared Transactions, occur.

This notice is delivered in satisfaction of the requirement in Section 6.19(c) (Notification that Physical 

Settlement will not occur) of the CDS Clearing Supplement to inform you of such completion.

This notice (and any dispute, controversy, proceedings or claim of whatever nature arising out of or in 

any way relating to this agreement or its formation) shall be governed by and construed in accordance 

with English law.

Yours faithfully,

[Matched Buyer]/[Matched Seller]

________________________

Name:

Title:
SCHEDULE

Settlement Matched Pair Details

Settlement Matched 

Pair ID

Trade ID Reference Entity Trade Date Effective Date

[⚫] [⚫] [⚫] [⚫] [⚫]
APPENDIX IX: FORM OF NOTICE OF CLEARING MEMBER COMMUNICATIONS FAILURE EVENT 

PURSUANT TO SECTION 7.6 (CLEARING MEMBER COMMUNICATIONS FAILURE EVENT)

To:

LCH SA

18, rue du Quatre Septembre

75002 Paris

France

[Contact details]

[date]

Dear Sir/Madam 

Notice certifying occurrence of a Clearing Member Communications Failure Event

Reference is made to Section 7.6(b) (Clearing Member to notify LCH SA of Occurrence of Clearing 

Member Communications Failure Event) of the CDS Clearing Supplement. Defined terms shall have 

the meanings assigned to them in the CDS Clearing Supplement, unless otherwise defined herein.

In accordance with Section 7.6(b) (Clearing Member to notify LCH SA of Occurrence of Clearing 

Member Communications Failure Event) of the CDS Clearing Supplement, notice is hereby given that 

we are affected by a Clearing Member Communications Failure Event [insert details of such failure].

This notice (and any dispute, controversy, proceedings or claim of whatever nature arising out of or in 

any way relating to this agreement or its formation) shall be governed by and construed in accordance 

with English law.

Yours faithfully,

[Clearing Member]

________________________

Name:

Title:

[Signed by a senior officer (such as a managing director or equivalent) on behalf of the Clearing 

Member]
APPENDIX X: FORM OF NOTICE FOR CEASING TO BE SUBJECT TO A CLEARING MEMBER 

COMMUNICATIONS FAILURE EVENT PURSUANT TO SECTION 7.6 (CLEARING MEMBER 

COMMUNICATIONS FAILURE EVENT)

To:

LCH SA

18, rue du Quatre Septembre

75002 Paris

France

[Contact details]

[date]

Dear Sir/Madam 

Notice that a Clearing Member is no longer subject to Clearing Member Communications Failure 

Event 

Reference is made to Section 7.6(d) (Notification of Resolution of Clearing Member Communications 

Failure Event) of the CDS Clearing Supplement and the notice certifying the occurrence of a Clearing 

Member Communications Failure Event delivered by us to LCH SA on [⚫] (the Notice of Clearing 

Member Communications Failure Event). Defined terms shall have the meanings assigned to them 

in the CDS Clearing Supplement, unless otherwise defined herein.

In accordance with Section 7.6(d) (Notification of Resolution of Clearing Member Communications 

Failure Event) of the CDS Clearing Supplement, notice is hereby given that we are no longer subject to 

the relevant Clearing Member Communications Failure Event described in the Notice of Clearing 

Member Communications Failure Event.

This notice (and any dispute, controversy, proceedings or claim of whatever nature arising out of or in 

any way relating to this agreement or its formation) shall be governed by and construed in accordance 

with English law.

Yours faithfully,

[Clearing Member]

________________________

Name:

Title:
APPENDIX XI: FORM OF NOTICE OF DISPUTE RELATING TO ANY MATCHED PAIR

To:

LCH SA

18, rue du Quatre Septembre

75002 Paris

France

[Contact details]

[date]

[Restructuring][Settlement] Matched Pair ID: [⚫]

Trade ID: [⚫]

Dear Sir/Madam 

Notice of dispute relating to [insert details of the relevant Matched Pairs subject to a dispute]

Reference is made to Section 7.11 (Disputes as to Notices) of the CDS Clearing Supplement. Defined 

terms shall have the meanings assigned to them in the CDS Clearing Supplement, unless otherwise 

defined herein.

In accordance with Section 7.11 (Disputes as to Notices) of the CDS Clearing Supplement, notice is 

hereby given of the following dispute(s):

[insert details of Matched Pair(s) affected and the relevant dispute].

This notice (and any dispute, controversy, proceedings or claim of whatever nature arising out of or in 

any way relating to this agreement or its formation) shall be governed by and construed in accordance

with English law.

Yours faithfully,

[Matched Buyer]/[Matched Seller]

________________________

Name:

Title:
APPENDIX XII: FORM OF NOTICE RELATING TO SELF-REFERENCING TRANSACTIONS

To:

LCH SA

18, rue du Quatre Septembre

75002 Paris

France

[Contact details]

[date]

Dear Sir/Madam 

Notice relating to Self-Referencing Transactions 

Credit Derivative Transaction Details: As set out in the Schedule hereto8.

Reference is made to the Credit Derivative Transaction[s] described in the Schedule hereto (the 

Transaction[s]) between [⚫], as Seller and [⚫], as Buyer and to Section 9.1(a) (Duty to notify) of the 

CDS Clearing Supplement. Defined terms shall have the meanings assigned to them in the CDS Clearing 

Supplement, unless otherwise defined herein.

In accordance with Section 9.1(a) (Duty to notify) of the CDS Clearing Supplement, notice is hereby 

given of the following: [insert details of one or more of the relevant events, as set out in paragraphs 

(i), (ii) and (iii) of Section 9.1(a) (Duty to notify) of the CDS Clearing Supplement].

This notice (and any dispute, controversy, proceedings or claim of whatever nature arising out of or in 

any way relating to this agreement or its formation) shall be governed by and construed in accordance 

with English law.

Yours faithfully,

[Clearing Member]

________________________

Name:

Title:

8 A single Credit Event Notice may be submitted for multiple trades in respect of the same Counterparty
SCHEDULE

Credit Derivative Transaction Details

[Restructuring] 

Matched Pair ID

Trade ID Reference Entity Trade Date Effective Date

[⚫] [⚫] [⚫] [⚫] [⚫]
APPENDIX XIII: CCM CLIENT TRANSACTION REQUIREMENTS

The following provisions (the "Mandatory Provisions") are to be incorporated into a CCM Client 

Transaction between a CCM and its CCM Client that corresponds to a CCM Client Cleared Transaction 

registered in the CCM Client Trade Account in the name of such CCM for such CCM Client. The terms 

of the corresponding CCM Client Cleared Transaction will be governed by the CDS Clearing 

Supplement. The CDS Clearing Supplement and these Mandatory Provisions have been drafted so as 

to complement each other.

LCH SA shall not be responsible for any loss suffered or expense incurred by a CCM or any CCM Client 

as a result of the inclusion in the CCM Client Transaction Documents of the requirements set-out in 

this Appendix XIII.

The Mandatory Provisions, when they are incorporated into any CCM Client Transaction Documents, 

shall be governed by and construed in accordance with the governing law applicable to such CCM 

Client Transaction Documents of which they form part, or if different and applicable, in accordance 

with such CCM Client Transaction Documents, the governing law applicable to transactions entered 

into under such CCM Client Transaction Documents. The Mandatory Provisions shall be subject to such 

dispute resolution mechanisms and procedures and such courts or other forum for hearing disputes 

as are applicable in respect of such CCM Client Transaction Documents of which they form part. Each 

CCM and its CCM Client to which the Mandatory Provisions apply will waive any right to object to any 

such choice of law or proceedings on the basis of forum non conveniens, that the governing law or 

forum is not specified on the face of this document or otherwise.

In this Appendix XIII:

"CCM Client Buyer" means a CCM Client that is party to a CCM Client Transaction as protection buyer; 

"CCM Client Seller" means a CCM Client that is party to a CCM Client Transaction as protection seller; 

"CCM Buyer/Matched Seller" means a CCM that is party to a CCM Client Transaction as protection 

buyer and to the corresponding CCM Client Cleared Transaction as protection seller; and

"CCM Seller/Matched Buyer" means a CCM that is party to a CCM Client Transaction as protection 

seller and to the corresponding CCM Client Cleared Transaction as protection buyer.

1. Defined Terms

Terms used in the Mandatory Provisions and not otherwise defined herein or in the 2003 

ISDA Credit Derivatives Definitions shall have the meanings given to them in the CDS Clearing 

Supplement.

2. Terms of CCM Client Transactions

2.1 2003 ISDA Credit Derivatives Definitions

The definitions and provisions contained in the 2003 ISDA Credit Derivatives Definitions 

published by the International Swaps and Derivatives Association as supplemented by the 

2009 ISDA Credit Derivatives Determinations Committees, Auction Settlement and 
Restructuring Supplement to the 2003 ISDA Credit Derivatives Definitions (the "2003 ISDA 

Credit Derivatives Definitions"), are incorporated into each CCM Client Transaction.

2.2 Single Name CCM Client Transactions - Reference Obligation

With effect from the date on which the CCM Client Cleared Transaction corresponding to a 

Single Name CCM Client Transaction is registered in the TIW, such Single Name CCM Client 

Transaction shall be deemed to reference the CDSClear Preferred Reference Obligation in 

respect of the relevant Reference Entity.

2.3 Single Name CCM Client Transactions - Updating Physical Settlement Matrix

With effect from the date on which the CCM Client Cleared Transaction corresponding to a 

Single Name CCM Client Transaction is registered in the TIW, such Single Name CCM Client 

Transaction shall be deemed to reference the Relevant Physical Settlement Matrix.

With effect from the close of business on any Matrix Re-versioning Date, any Single Name 

CCM Client Transaction referencing the Existing Matrix will be deemed to have been 

amended so as to reference the Revised Matrix. 

2.4 Index CCM Client Transactions - Updating Eligible Index Versions

Upon the occurrence of a DTCC Re-versioning Date, any Index CCM Client Transaction shall 

be automatically amended so as to reference the portfolio of Reference Entities specified in 

the revised version of the index published by the Index Publisher and referenced in the TIW 

with effect from such DTCC Re-versioning Date.

2.5 Initial Payment Date

Notwithstanding anything to the contrary in the 2003 ISDA Credit Derivatives Definitions, if 

the Initial Payment Date specified in the CCM Client Transaction Documents in respect of any 

CCM Client Transaction is a date falling after the Clearing Day on which the Cleared 

Transactions related to such CCM Client Transaction are created by novation pursuant to Title 

III (Clearing Operations) of the CDS Clearing Rule Book, the Initial Payment Date in respect of 

such CCM Client Transaction shall be deemed to be the Transaction Business Day immediately 

following the Clearing Day on which the Cleared Transactions relating to such CCM Client 

Transaction are created.

2.6 2014 ISDA Credit Derivatives Definitions Protocol

The Protocol Effectiveness Condition (as defined in the 2014 ISDA Credit Derivatives 

Definitions Protocol published by ISDA on 21 August 2014 and supplemented by the 

Supplement thereto published by ISDA on 15 September 2014 and as further supplemented 

from time to time (the "2014 Protocol")) being satisfied, then from and including the 

Implementation Date (as defined in the 2014 Protocol) the amendments set forth in Part 1 

(Global Amendments) of Schedule 1 (Amendments to Protocol Covered Transactions) of the 

2014 Protocol shall apply to each Index CCM Client Transaction and each Single Name CCM 

Client Transaction which incorporates the 2003 ISDA Credit Derivatives Definitions and each 
such CCM Client Transaction shall be a Protocol Covered Transaction for the purposes of the 

2014 Protocol provided that:

(i) the date on which the CCM Client Cleared Transaction corresponding to such CCM 

Client Transaction is registered in the TIW is prior to the Implementation Date;

(ii) such CCM Client Transaction is not an Excluded Transaction (as defined in the 2014 

Protocol) provided that if such CCM Client Transaction relates to more than one 

Reference Entity and would otherwise be a Protocol Covered Transaction but for the 

inclusion of any Affected Portion (as defined in the 2014 Protocol) therein, such 

Affected Portion shall be exclude for the purposes of this Mandatory Provision 2.6(a) 

and the remaining portion of such CCM Client Transaction shall be deemed to be a 

Protocol Covered Transaction;

(iii) the Scheduled Termination Date in respect of such CCM Client Transaction is on or 

after the Implementation Date;

(iv) no Event Determination Date has occurred in respect of such CCM Client Transaction 

prior to the Implementation Date;

(v) from and including the Implementation Date the provisions of Appendix XIII of Part 

B of the CDS Clearing Supplement shall apply to such CCM Client Transaction or the 

portion of such CCM Client Transaction other than the Affected Portion, as 

applicable and the CCM Client Cleared Transaction corresponding thereto and such 

CCM Client Transaction shall be treated as if it had been entered into and is subject 

to the 2014 ISDA Credit Derivatives Definitions. In the event of any inconsistency 

between the provisions of Part B of the CDS Clearing Supplement and the 

amendments set forth in this paragraph 2.6, the provisions of Appendix XIII of Part 

B of the CDS Clearing Supplement shall prevail.

3. Additional CCM Client Transactions, Compression and Succession Events

3.1 Creation of Additional CCM Client Transactions

Immediately following: 

(a) the creation of Matched Pairs by LCH SA pursuant to Section 8.1 (Creation of Matched 

Pairs) of the CDS Clearing Supplement; or

(b) the creation of Resulting Single Name Cleared Transactions pursuant to Section 4.4

(Re-couponing of Restructuring Cleared Transactions) of the CDS Clearing 

Supplement, 

if a CCM Client Transaction has been specified to have been split into or replaced by two or 

more separate CCM Client Transactions in the TIW as a result of the creation of such Matched 

Pairs or Resulting Single Name Cleared Transactions, such CCM Client Transaction shall be 

split into or terminated and replaced by two or more (as applicable) corresponding CCM 

Client Transactions. The Floating Rate Payer Calculation Amount and Fixed Rate of each such 

CCM Client Transaction shall correspond to the Floating Rate Payer Calculation Amount and 

Fixed Rate specified in TIW for such CCM Client Transaction. In respect of CCM Client 
Transactions created as a result of the creation of Resulting Single Name Cleared 

Transactions, the Trade Date of such new CCM Client Transactions shall be the same as the 

Trade Date of the equivalent Resulting Single Name Cleared Transactions. Otherwise, each 

new CCM Client Transaction shall have the same terms as the original CCM Client Transaction.

3.2 Reversal of Creation of Additional CCM Client Transactions

If a CCM Client Transaction has been split into two or more CCM Client Transactions pursuant 

to Mandatory Provision 3.1 (Creation of Additional CCM Client Transactions) above and the 

relevant DC Credit Event Announcement that led to the creation of the Matched Pairs is 

reversed such that Section 5.5 (Reversal of DC Credit Event Announcements) of the CDS 

Clearing Supplement applies, then, subject to Section 9.1(c)(iii)(B) of the 2003 ISDA Credit 

Derivatives Definitions, any additional CCM Client Transactions created pursuant to 

Mandatory Provision 3.1 (Creation of Additional CCM Client Transactions) above shall be 

deemed not to have been created and any Credit Event Notices delivered in connection with 

such CCM Client Transactions shall be deemed to be ineffective. 

3.3 Compression of CCM Client Transactions

If two or more CCM Client Transactions are specified in TIW to have been compressed into a 

single CCM Client Transaction pursuant to Chapter 3 (Compression) of Title III (Clearing 

Operations) of the CDS Clearing Rule Book, such CCM Client Transactions shall be compressed 

into a single CCM Client Transaction with a Floating Rate Payer Calculation Amount equal to 

the aggregate Floating Rate Payer Calculation Amounts of the original CCM Client 

Transactions.

3.4 Succession Events and Cleared Transactions

If LCH SA takes any action with respect to a CCM Client Cleared Transaction pursuant to 

Section 4.5 (Succession Events and Cleared Transactions) of the CDS Clearing Supplement so 

as to give effect to a Succession Event, such action shall also be deemed to have been taken 

with respect to the corresponding CCM Client Transaction.

4. Notices

4.1 Validity of Notices

Save if and as expressly stated to the contrary in the Mandatory Provisions, any notice 

delivered by a CCM Client to its CCM in respect of a CCM Client Transaction (including, 

without limitation, a Credit Event Notice, Notice of Physical Settlement, Notice to Exercise 

Movement Option or NOPS Amendment Notice) at a time or in a manner in which the CCM 

would not be permitted to deliver such a notice to LCH SA (or to a relevant Matched Buyer 

or Matched Seller as designee of LCH SA(as applicable)) in respect of the corresponding CCM 

Client Cleared Transaction pursuant to the terms of the CDS Clearing Supplement shall be 

deemed not to have been delivered.
4.2 Credit Event Notices and NEMOs given via DTCC

(a) Credit Event Notices and NEMOs to be given via DTCC

Credit Event Notices and Notices to Exercise Movement Option shall be delivered by 

way of the relevant DTCC Notice Facility, save if and as expressly stated to the contrary 

in the Mandatory Provisions or otherwise agreed between the parties to the CCM 

Client Transaction. The deemed time of delivery of any such notices shall be as set out 

in the DTCC Rules from time to time.

(b) Credit Event Notices and NEMOs delivered in respect of corresponding CCM Client 

Cleared Transaction

In respect of a CCM Client Transaction, if: 

(i) CCM Seller/Matched Buyer or CCM Buyer/Matched Seller delivers a valid Credit 

Event Notice or Notice to Exercise Movement Option in respect of the 

corresponding CCM Client Cleared Transaction by way of the relevant DTCC 

Notice Facility; or 

(ii) a Credit Event Notice or Notice to Exercise Movement Option is deemed to 

have been delivered in respect of the corresponding CCM Client Cleared 

Transaction pursuant to Section 7.3(b) (Credit Event Notices and NEMOs 

delivered in respect of CCM Client Transaction) of the CDS Clearing Supplement 

as a result of the receipt of a valid Credit Event Notice or Notice to Exercise 

Movement Option (as applicable) by way of the relevant DTCC Notice Facility 

in respect of the CCM Client Transaction between the other CCM of a Matched 

Pair and its CCM Client,

and a Credit Event Notice or Notice to Exercise Movement Option (as applicable) has 

not already been given in respect of such CCM Client Transaction in accordance with 

Mandatory Provision 4.4 (Communications Failure Event) such notice (or deemed 

notice) shall be deemed also to be a Credit Event Notice or Notice to Exercise 

Movement Option (as applicable) for the purposes of such CCM Client Transaction.

4.3 Consequences of DTCC Failure

If a DTCC Failure Event occurs, from (and including) the DTCC Failure Event Time to (but 

excluding) the DTCC Resolution Time:

(a) Mandatory Provision 4.2(a) (Credit Event Notices and NEMOs to be given via DTCC) 

shall not apply and accordingly Credit Event Notices and Notices to Exercise 

Movement Option shall be delivered directly (and not via the relevant DTCC Notice 

Facility);

(b) any notice delivered via the relevant DTCC Notice Facility prior to the DTCC Failure 

Event Time will be valid and will not be affected by such DTCC Failure Event; and
(c) any notice delivered or purported to be delivered via the relevant DTCC Notice Facility 

at or following the DTCC Failure Event Time but prior to the DTCC Resolution Time 

will not be valid and effective.

Mandatory Provision 4.2(a) (Credit Event Notices and NEMOs to be given via DTCC) shall apply 

with effect from the DTCC Resolution Time and, accordingly, any notice thereafter delivered 

or purported to be delivered directly (and not via the relevant DTCC Notice Facility) will not 

be valid and effective.

4.4 Communications Failure Event

(a) Right to deliver Notices manually following Communications Failure Event

If a party is affected by a significant communications or information technology failure 

resulting in it being impossible or impractical for such party to deliver any Credit Event 

Notice in relation to a Restructuring Credit Event or any Notice to Exercise Movement 

Option via a relevant DTCC Notice Facility (a "Communications Failure Event") it may, 

notwithstanding Mandatory Provision 4.2(a) (Credit Event Notices and NEMOs to be 

given via DTCC), deliver Credit Event Notices and Notices to Exercise Movement 

Option directly (and not via the relevant DTCC Notice Facility). 

Such party shall deliver, together with any Credit Event Notice or Notice to Exercise 

Movement Option delivered by it directly, a notice signed by a senior officer (such as 

a managing director or equivalent) of such party certifying that it is affected by a 

Communications Failure Event (or, if such party is unable to deliver such notice in 

writing, orally by telephone). 

(b) Notices to party affected by Communications Failure Event

For the avoidance of doubt, Mandatory Provision 4.2(a) (Credit Event Notices and 

NEMOs to be given via DTCC) shall continue to apply in respect of notices given by the 

party not affected by the Communications Failure Event to the party affected by the 

Communications Failure Event.

(c) Notification of Resolution of Communications Failure Event

As soon as reasonably practicable upon a party ceasing to be subject to a 

Communications Failure Event, it shall notify the other party accordingly and 

thereupon Mandatory Provision 4.2(a) (Credit Event Notices and NEMOs to be given 

via DTCC) shall apply and, accordingly, any notice thereafter delivered or purported to 

be delivered directly (and not via the relevant DTCC Notice Facility) will not be valid 

and effective.

(d) Duty to Mitigate

A party which is subject to a Communications Failure Event shall use reasonable 

endeavours to mitigate the operational impact on the other party of any 

Communications Failure Event, to cure such Communications Failure Event as soon as 

possible and to ensure that the circumstances giving rise to the relevant 

Communications Failure Event do not recur.
(e) Breach does not Invalidate Valid Notices

Without prejudice to any other rights or remedies of the parties, any breach by a party 

of the provisions of this Mandatory Provision 4.4 shall not cause any Credit Event 

Notice or Notice to Exercise Movement Option delivered otherwise than in 

accordance with the terms of the relevant CCM Client Transaction, which would 

otherwise be valid and effective, to be invalid or ineffective.

4.5 Uncertain Delivery

(a) Manual Notice permitted if Delivery of Notice in DTCC uncertain

Notwithstanding Mandatory Provision 4.2(a) (Credit Event Notices and NEMOs to be 

given via DTCC), where such notices are permitted to be delivered by means other 

than the relevant DTCC Notice Facility pursuant to this Mandatory Provision 4

(Notices), and a party is uncertain as to whether or not a Credit Event Notice or Notice 

to Exercise Movement Option (as applicable) it attempted to deliver via a DTCC Notice 

Facility has: 

(i) actually been delivered; or 

(ii) was delivered prior to the DTCC Failure Time, 

that party shall be entitled to deliver such a notice directly to the other party specifying 

that such notice is only to be effective to the extent that the other purported notice is 

not effective. 

(b) Details to be provided of Uncertain Notice

If a party delivers a manual notice pursuant to Mandatory Provision (a) (Manual Notice 

permitted if Delivery of Notice in DTCC uncertain) above, such party shall be required 

to provide (together with such notice) sufficient details of the notice attempted to be 

given by way of the relevant DTCC Notice Facility so as to allow the other party to 

identify the communication concerned. 

(c) DTCC Notice delivered successfully 

If the first Credit Event Notice or Notice to Exercise Movement Option (as applicable) 

to which the manual notice delivered pursuant to Mandatory Provision (a) (Manual 

Notice permitted if Delivery of Notice in DTCC uncertain) above related was actually 

delivered successfully, any subsequent Credit Event Notice or Notice to Exercise 

Movement Option delivered shall be deemed not to have been delivered.

5. Determination of Credit Events and Succession Events

Notwithstanding any provision to the contrary:

(a) the Calculation Agent shall not make any determination in respect of any matter 

which is or may be subject to resolution under Sections 3.5 (Succession Event 

Resolutions) or 3.6 (Substitute Reference Obligation Resolutions) of the DC Rules; and
(b) neither party shall be entitled to deliver a Succession Event Notice or a Credit Event 

Notice (other than Credit Event Notices in relation to a Restructuring Credit Event in 

accordance with the terms of any Restructuring CCM Client Transaction (including the 

Mandatory Provisions) and, where applicable, the DTCC Rules).

6. Timings for the Delivery of Manual Notices 

The following provisions shall solely be applicable in respect of a CCM Client Transaction between a 

CCM Client Buyer and its CCM Seller/Matched Buyer:

6.1 Delivery of Manual Notices by CCM Client Buyer

For the purposes of the delivery by CCM Client Buyer of any notice in respect of a CCM Client 

Transaction which is permitted pursuant to the terms of such CCM Client Transaction 

(including the Mandatory Provisions) to be delivered manually (rather than via the relevant 

DTCC Notice Facility), Section 1.10 (Requirements Regarding Notices) of the 2003 ISDA Credit 

Derivatives Definitions shall be amended so as to provide that, solely in respect of the final 

day on which such manual notice could validly be delivered pursuant to the terms of such 

CCM Client Transaction (including the Mandatory Provisions), any such notice shall be 

required to be delivered on or prior to 2:00 p.m. (Calculation Agent City time) in order to be 

effective.

A manual notice (including, without limitation, a Credit Event Notice or a Notice to Exercise 

Movement Option) delivered after 2:00 p.m. (Calculation Agent City time) on the final day on 

which such notice could validly be delivered pursuant to the terms of the relevant CCM Client 

Transaction (including the Mandatory Provisions) shall be deemed not to have been 

delivered. 

6.2 Onward Delivery of Certain Notices by CCM Seller/Matched Buyer to Matched Seller

Any Credit Event Notice, Notice to Exercise Movement Option, Notice of Physical Settlement, 

NOPS Amendment Notice, any notice given pursuant to Section 9.9 (Buy-in of Bonds Not 

Delivered) of the 2003 ISDA Credit Derivatives Definitions or any notice given pursuant to 

Section 9.10 (Alternative Procedures Relating to Loans Not Delivered) of the 2003 ISDA Credit 

Derivatives Definitions which is permitted to be and is delivered manually by CCM Client 

Buyer to CCM Seller/Matched Buyer in respect of and pursuant to the terms of a CCM Client 

Transaction (including the Mandatory Provisions) shall not be effective unless and until CCM 

Seller/Matched Buyer effectively delivers the relevant equivalent notice to the relevant 

Matched Seller in respect of and pursuant to the terms of the corresponding Restructuring 

Cleared Transaction or Physically Settled Cleared Transaction, as applicable.

CCM Seller/Matched Buyer undertakes to deliver such a notice to the relevant Matched Seller 

within two hours of its receipt of the equivalent notice from CCM Client Buyer if such notice 

is received between 9:00 a.m. (Calculation Agent City time) and 4:00 p.m. (Calculation Agent 

City time) on a Calculation Agent City Business Day. Any such notice received by CCM 

Seller/Matched Buyer after 4:00 p.m. (Calculation Agent City time) on a Calculation Agent 

City Business Day shall be deemed to have been received at 9:00 a.m. (Calculation Agent City 

time) on the following Calculation Agent City Business Day. Any such notice received by CCM 

Seller/Matched Buyer before 9:00 a.m. (Calculation Agent City time) on a Calculation Agent 
City Business Day shall be deemed to have been received at 9:00 a.m. (Calculation Agent City 

time) on such Calculation Agent City Business Day. Any such notice delivered on a day that 

is not a Calculation Agent City Business Day shall be deemed to have been delivered at 9.00 

a.m. (Calculation Agent City time) on the following Calculation Agent City Business Day.

The following provision shall solely be applicable in respect of a CCM Client Transaction between a 

CCM Client Seller and its CCM Buyer/Matched Seller: 

6.3 Receipt of Certain Notices by CCM Buyer/Matched Seller deemed to be Receipt by CCM Client 

Seller

Any Credit Event Notice, Notice to Exercise Movement Option, Notice of Physical Settlement,

NOPS Amendment Notice, any notice given pursuant to Section 9.9 (Buy-in of Bonds Not 

Delivered) of the 2003 ISDA Credit Derivatives Definitions or any notice given pursuant to 

Section 9.10 (Alternative Procedures Relating to Loans Not Delivered) of the 2003 ISDA Credit 

Derivatives Definitions which is permitted to be and is delivered manually by the relevant 

Matched Buyer to CCM Buyer/Matched Seller in respect of and pursuant to the terms of a 

Restructuring Cleared Transaction or Physically Settled Cleared Transaction (as applicable) 

relating to a CCM Client Transaction between such CCM Buyer/Matched Seller and CCM 

Client shall be deemed to constitute simultaneous delivery by CCM Buyer/Matched Seller to 

CCM Client Seller of such notice in respect of such CCM Client Transaction. 

CCM Buyer/Matched Seller undertakes to deliver such a notice to CCM Client Seller within 

two hours of its receipt of the equivalent notice from the relevant Matched Buyer if such 

notice is received between 9:00 a.m. (Calculation Agent City time) and 4:00 p.m. (Calculation 

Agent City time) on a Calculation Agent City Business Day. Any such notice received by CCM 

Buyer/Matched Seller after 4:00 p.m. (Calculation Agent City time) on a Calculation Agent 

City Business Day shall be deemed to have been received at 9:00 a.m. (Calculation Agent City 

time) on the following Calculation Agent City Business Day. Any such notice received by CCM 

Buyer/Matched Seller before 9:00 a.m. (Calculation Agent City time) on a Calculation Agent 

City Business Day shall be deemed to have been received at 9:00 a.m. (Calculation Agent City 

time) on such Calculation Agent City Business Day. Any such notice delivered on a day that is 

not a Calculation Agent City Business Day shall be deemed to have been delivered at 9.00 

a.m. (Calculation Agent City time) on the following Calculation Agent City Business Day.

7. Physical Settlement

7.1 Fallback to Cash Settlement resulting from corresponding CCM Client Cleared Transaction

If a CCM notifies its CCM Client that the Physically Settled Cleared Transaction corresponding 

to their CCM Client Transaction is to be settled (in whole or in part) by Cash Settlement 

pursuant to Section 6 (Physical Settlement) of the CDS Clearing Supplement and such CCM 

Client Transaction has not already been settled by Physical Settlement, such CCM Client 

Transaction shall also be settled (in whole or in part, as applicable) by Cash Settlement and 

the Cash Settlement Amount and the Cash Settlement Date shall be the same as the Cash 

Settlement Amount and the Cash Settlement Date determined in respect of the 

corresponding Physically Settled Cleared Transaction.
In respect of the CCM Client Transaction between CCM Client Buyer and CCM Seller/Matched 

Buyer, If CCM Client Buyer has already Delivered the Deliverable Obligations to CCM 

Seller/Matched Buyer, CCM Seller/Matched Buyer shall redeliver equivalent Deliverable 

Obligations to CCM Client Buyer in whole (if Cash Settlement applies) or in part (if Partial Cash 

Settlement applies in which case CCM Seller/Matched Buyer shall retain a proportion of the 

Deliverable Obligations equal to the proportion of the Transaction to be settled by Physical 

Settlement).

7.2 Fallback to Cash Settlement in respect of Non-Deliverable Obligations

If, in respect of a CCM Client Transaction, Buyer is not permitted to Deliver one or more 

Deliverable Obligations (such Deliverable Obligations, the Non-Deliverable Obligations) 

specified in the relevant Notice of Physical Settlement or NOPS Amendment Notice to Seller 

because:

the amount of such Deliverable Obligation is less than the relevant minimum denomination of such 

Deliverable Obligation; or

Seller is not a permitted transferee under such Deliverable Obligation (and, in the case of this subsection (ii), such circumstance would not constitute an illegality or impossibility outside the control of 

a relevant party for the purposes of Section 9.3 (Partial Cash Settlement Due to Impossibility or 

Illegality) of the 2003 ISDA Credit Derivatives Definitions),

then it shall notify Seller accordingly describing in reasonable detail the relevant 

circumstances. 

With effect from such notification, such occurrence shall be treated, in relation to such CCM 

Client Transaction, as an illegality or impossibility outside the control of a relevant party for 

the purpose of Section 9.3 (Partial Cash Settlement Due to Impossibility or Illegality) of the 

2003 ISDA Credit Derivatives Definitions and "Cash Settlement" pursuant to the Partial Cash 

Settlement Terms shall be deemed to apply to such CCM Client Transaction with respect to 

the Non-Deliverable Obligations as though the Non-Deliverable Obligations were 

Undeliverable Obligations and the provisions set out in Mandatory Provision 7.3

(Consequences of Cash Settlement) below shall apply. 

7.3 Consequences of Cash Settlement

If the circumstances set out in either Section 9.3 (Partial Cash Settlement Due to Impossibility 

or Illegality) of the 2003 ISDA Credit Derivatives Definitions or Mandatory Provision 7.2

(Fallback to Cash Settlement in respect of Non-Deliverable Obligations) apply to a CCM Client 

Transaction, then:

(a) the Latest Permissible Physical Settlement Date in respect of such CCM Client 

Transaction will be deemed to be the first date on which the relevant Buyer or Seller 

effectively gave the relevant notice to the other pursuant to either Section 9.3 (Partial 

Cash Settlement Due to Impossibility or Illegality) of the 2003 ISDA Credit Derivatives 

Definitions or Mandatory Provision 7.2 (Fallback to Cash Settlement in respect of NonDeliverable Obligations) above, as applicable, (and for these purposes, Section 9.7 
(Latest Permissible Physical Settlement Date) of the 2003 ISDA Credit Derivatives 

Definitions shall not apply); and

(b) where sub-paragraph (ii) of Mandatory Provision 7.2 (Fallback to Cash Settlement in 

respect of Non-Deliverable Obligations) applies, Indicative Quotations shall not be 

applicable. 

The following provisions shall solely be applicable in respect of a CCM Client Transaction between a 

CCM Client Buyer and its CCM Seller/Matched Buyer:

7.4 Delivery of Deliverable Obligations by CCM Client Buyer to CCM Seller/Matched Buyer

This Mandatory Provision 7.4 shall be applicable unless the CCM Client Buyer and CCM 

Seller/Matched Buyer agree that it shall not apply in respect of a specific CCM Client 

Transaction.

In respect of a CCM Client Transaction, the Delivery of any Deliverable Obligations to be 

Delivered by CCM Client Buyer to CCM Seller/Matched Buyer shall be deemed not to have 

occurred for the purposes of such CCM Client Transaction unless and until CCM 

Seller/Matched Buyer Delivers equivalent Deliverable Obligations to Matched Seller 

pursuant to the Physical Settlement of the corresponding Physically Settled Cleared 

Transaction.

Unless in respect of the corresponding Physically Settled Cleared Transactions: 

(a) Cash Settlement is applicable (in whole or in part); 

(b) a Buy-in Period is applicable or Buy-in Price has been determined pursuant to Section 

9.9 (Buy-in of Bonds Not Delivered) of the 2003 ISDA Credit Derivatives Definitions; 

(c) a Deemed Buy-in Period is applicable pursuant to Section 6.8(b)(i) of the CDS Clearing 

Supplement or Section 6.8(b)(ii) of the CDS Clearing Supplement is applicable; or 

(d) Section 9.10(a) of the 2003 ISDA Credit Derivatives Definitions is applicable or 

Matched Seller has required Matched Buyer to Deliver a Bond or Loan pursuant to 

Section 9.10(b) of the 2003 ISDA Credit Derivatives Definitions, 

(each such event, a "Non-delivery Event"), CCM Seller/Matched Buyer undertakes to Deliver 

the Deliverable Obligations (or such portion of the Deliverable Obligations not affected by a 

Non-delivery Event) to Matched Seller not later than the first Business Day after the day on 

which a trade in such Deliverable Obligation would, if effected on the day on which CCM 

Seller/Matched Buyer received the Deliverable Obligations from CCM Client Buyer or on 

which the relevant Non-delivery Event ceased to apply, as applicable, (or if such day is not a 

Business Day, the following Business Day), be settled in accordance with then current market 

practice of such Deliverable Obligation, as determined by the Calculation Agent after 

consultation with the parties.

Forthe purposes of Article VIII (Terms relating to Physical Settlement) of the 2003 ISDA Credit 

Derivatives Definitions, the Physical Settlement Amount shall not be payable by CCM 

Seller/Matched Buyer to CCM Client Buyer in respect of the CCM Client Transaction until the 
Physical Settlement of the corresponding Physically Settled Cleared Transaction has 

occurred.

7.5 Buy-in of Bonds not Applicable

Section 9.9 (Buy-in of Bonds Not Delivered) of the 2003 ISDA Credit Derivatives Definitions 

shall not apply.

7.6 Buyer's Right to Deliver suspended during Buy-in Period

If CCM Seller/Matched Buyer notifies CCM Client Buyer in respect of a CCM Client Transaction 

that (i) it has received a Buy-in Notice from Matched Seller in respect of the Matched 

Contracts of the related Settlement Matched Pair or (ii) it has been notified by Matched Seller 

in respect of the Matched Contracts of the related Settlement Matched Pair pursuant to 

Section 6.8(b) (Deemed Buy-in of Bonds resulting from CCM Client Transaction of Matched 

Seller) of the CDS Clearing Supplement that such Matched Seller has received a Buy-in Notice 

from its CCM Client in respect of the CCM Client Transaction between such Matched Seller 

and its CCM Client, such notice from CCM Seller/Matched Buyer specifying:

i) the Buy-in Date; 

ii) the Relevant Bonds; and

iii) the Outstanding Principal Balance thereof sought to be bought-in,

then CCM Client Buyer's right to Deliver the specified Relevant Bonds shall be suspended until 

the fourth Business Day (inclusive) following such Buy-in Date.

7.7 Buy-in of Bonds in respect of Matched Contracts of the Settlement Matched Pair

Provided that Physical Settlement has not already occurred in respect of a CCM Client 

Transaction, if CCM Seller/Matched Buyer notifies CCM Client Buyer that a Buy-in Price has 

been (i) determined or (ii) deemed to be determined pursuant to Section 6.8(b) (Deemed Buyin of Bonds resulting from CCM Client Transaction of Matched Seller) of the CDS Clearing 

Supplement, in respect of Relevant Bonds for the purposes of the Matched Contracts of the 

related Settlement Matched Pair, then on the Buy-in Effective Date: 

i) CCM Client Buyer will be deemed to have Delivered to CCM Seller/Matched Buyer an 

Outstanding Principal Balance of the Deliverable Obligations equal to the Outstanding 

Principal Balance of the Deliverable Obligations Delivered or deemed to be Delivered 

by CCM Seller/Matched Buyer to Matched Seller in respect of the Matched Contracts; 

and

ii) the Physical Settlement Amount to be paid by CCM Seller/Matched Buyer to CCM 

Client Buyer in respect of this CCM Client Transaction shall be reduced (but not below 

zero) by an amount equal to the amount by which the Physical Settlement Amount 

to be paid to CCM Seller/Matched Buyer by Matched Seller in respect of the Matched 

Contracts is to be reduced.
CCM Seller/Matched Buyer shall notify CCM Client Buyer of such Outstanding Principal 

Balance of the Deliverable Obligations and such Physical Settlement Amount reduction for 

the purposes of i) and ii) above and of the Buy-in Effective Date.

If CCM Client Buyer has already Delivered Deliverable Obligations to CCM Seller/Matched 

Buyer, CCM Seller/Matched Buyer shall redeliver equivalent Deliverable Obligations to CCM 

Client Buyer and such equivalent Deliverable Obligations shall have an Outstanding Principal 

Balance equal to the Outstanding Principal Balance of the Deliverable Obligation(s) specified 

by CCM Seller/Matched Buyer in the above notice and deemed to have been Delivered by 

CCM Client Buyer to CCM Seller/Matched Buyer pursuant to this Mandatory Provision 7.7.

7.8 Alternative Procedures relating to Loans – Seller Right to Select

Section 9.10(b) (Alternative Procedures Relating to Loans Not Delivered) of the 2003 ISDA 

Credit Derivatives Definitions shall not apply.

7.9 Alternative Procedures relating to Loans – Seller designates alternative Loan or Bond

In respect of a CCM Client Transaction, CCM Seller/Matched Buyer shall notify CCM Client 

Buyer if it has purchased Bond(s) and/or Loan(s) pursuant to Section 9.10(b) (Alternative 

Procedures Relating to Loans Not Delivered) of the 2003 ISDA Credit Derivatives Definitions 

on the instructions of the Matched Seller in respect of the corresponding CCM Client Cleared 

Transaction. 

Following such notification, such Bond(s) and/or Loan(s) shall be deemed to have been 

Delivered by CCM Client Buyer to CCM Seller/Matched Buyer in Physical Settlement of the 

CCM Client Transaction and the Physical Settlement Amount payable by CCM Seller/Matched 

Buyer to CCM Client Buyer shall be reduced (but not below zero) by an amount equal to the 

price at which such Bond(s) and or Loan(s) were purchased.

CCM Seller/Matched Buyer shall provide CCM Client Buyer with details of such Bond(s) 

and/or Loan(s) and the related purchase price(s) in such notice.

If CCM Client Buyer has already Delivered Deliverable Obligations to CCM Seller/Matched 

Buyer, CCM Seller/Matched Buyer shall redeliver equivalent Deliverable Obligations to CCM 

Client Buyer and such equivalent Deliverable Obligations shall have an Outstanding Principal 

Balance equal to the Outstanding Principal Balance of the Bond(s) and/or Loan(s) specified 

by CCM Seller/Matched Buyer in the above notice and deemed to have been Delivered by 

CCM Client Buyer to CCM Seller/Matched Buyer pursuant to this Mandatory Provision 7.9. 

The following provisions shall solely be applicable in respect of a CCM Client Transaction between 

CCM Client Seller and CCM Buyer/Matched Seller:

7.10 Delivery of Deliverable Obligations to CCM Client Seller

This Mandatory Provision 7.10 shall be applicable unless the CCM Client Seller and CCM 

Buyer/Matched Seller agree that it shall not apply in respect of a specific CCM Client 

Transaction.
Subject to the proviso below, in respect of a CCM Client Transaction, the Delivery of any 

Deliverable Obligations to be Delivered by CCM Buyer/Matched Seller to CCM Client Seller 

shall be deemed to have occurred for the purposes of such CCM Client Transaction upon 

receipt by CCM Buyer/Matched Seller of the Deliverable Obligations in respect of the Physical 

Settlement of the related Physically Settled Cleared Transaction; provided, however, that if 

the CCM Client Transaction is to be settled by Cash Settlement (in whole or in part) pursuant 

to Section 9.3 (Partial Cash Settlement Due to Impossibility or Illegality) of the 2003 ISDA 

Credit Derivatives Definitions or Mandatory Provision 7.2 (Fallback to Cash Settlement in 

respect of Non-Deliverable Obligations) then such portion of the CCM Client Transaction 

which is to be settled by Cash Settlement shall not be deemed to be settled until such Cash 

Settlement occurs. 

Provided that Cash Settlement is not applicable, CCM Buyer/Matched Seller undertakes to 

Deliver the Deliverable Obligations to CCM Client Seller not later than the first Business Day 

after the day on which a trade in such Deliverable Obligation would, if effected on the day on 

which CCM Buyer/Matched Seller received the Deliverable Obligations from Matched Buyer 

(or if such day is not a Business Day, the following Business Day), be settled in accordance 

with then current market practice of such Deliverable Obligation, as determined by the 

Calculation Agent after consultation with the parties.

7.11 Alternative Procedures relating to Loans – Seller Right to Select

Section 9.10(b) (Alternative Procedures Relating to Loans Not Delivered) of the 2003 ISDA 

Credit Derivatives Definitions shall not apply.

7.12 Alternative Procedures relating to Loans in respect of Matched Contracts

In respect of a CCM Client Transaction, if CCM Buyer/Matched Seller notifies CCM Client Seller 

that a deemed amendment has been made to the Notice of Physical Settlement or any NOPS 

Amendment Notice in respect of the Matched Contracts of the Settlement Matched Pair that 

corresponds to such CCM Client Transaction pursuant to (i) Section 9.10(a) or (b) of the 2003 

ISDA Credit Derivatives Definitions or (ii) Section 6.9 (Alternative Procedures relating to Loans 

– Buyer Right to Deliver (Section 9.10(a) 2003 ISDA Credit Derivatives Definitions) of the CDS 

Clearing Supplement, then the Notice of Physical Settlement or any NOPS Amendment Notice 

in respect of such CCM Client Transaction shall be deemed to have been amended by the 

addition of the Bonds or Loans which have been deemed to be added to the Notice of Physical 

Settlement or any NOPS Amendment Notice for the purposes of the Matched Contracts of 

the related Settlement Matched Pair.
8. Self Referencing Transactions

8.1 Section 2.31 (Merger of Reference Entity and Seller) of the 2003 ISDA Credit Derivatives 

Definitions 

Section 2.31 (Merger of Reference Entity and Seller) of the 2003 ISDA Credit Derivatives 

Definitions shall not apply.

8.2 Notification of Self Referencing Transactions

In respect of any Single Name CCM Client Transaction, the CCM Client shall, unless prohibited 

from so doing by applicable law, notify the CCM as soon as reasonably practicable if:

i) the CCM Client is or consolidates or amalgamates with, or merges into, or transfers 

all or substantially all of its assets to, the Reference Entity in relation to such Single 

Name CCM Client Transaction or enters into any agreement in respect of any of the 

foregoing;

ii) the CCM Client and the Reference Entity in relation to such Single Name CCM Client 

Transaction are or become Affiliates; or

iii) in respect of a Restructuring CCM Client Transaction, the CCM Client is or becomes 

the Reference Entity in relation to such Restructuring CCM Client Transaction as a 

result of the occurrence of the relevant Restructuring Credit Event.

8.3 Termination of Self Referencing Transactions

A CCM Client Transaction shall be terminated (unless it has already been terminated) at the 

same time as the termination of the corresponding Single Name Cleared Transaction 

pursuant to Section 9.2 (Occurrence of Client Self Referencing Transactions) of the CDS 

Clearing Supplement and by reference to the price at which such Single Name Cleared 

Transaction is terminated and an amount will be payable:

(a) if the CCM receives an amount from LCH SA in relation to such Single Name Cleared 

Transaction pursuant to Section 9.2 (Occurrence of Client Self Referencing Transactions), 

by the CCM to the CCM Client equal to such amount and on the Business Day following 

receipt by the CCM of such amount from LCH SA; and 

(b) if the CCM is obliged to pay an amount to LCH SA in relation to such Single Name Cleared 

Transaction pursuant to Section 9.2 (Occurrence of Client Self Referencing Transactions), 

by the CCM Client to the CCM equal to such amount and on the later of (I) the Business 

Day prior to the day on which the CCM is obliged to pay such amount to LCH SA and (II) 

the Business Day following the Business Day on which the CCM gives notices to the CCM 

Client of the relevant amount.

8.4 Costs of Terminating Self Referencing Transactions

Without prejudice to any other indemnity agreed between the CCM and the CCM Client in 

relation to CCM Client Transactions, the CCM Client agrees to indemnify and hold harmless 

the CCM from and against all costs and expenses that the CCM is obliged to bear pursuant to 
Section 9.2 (Occurrence of Client Self Referencing Transactions) of the CDS Clearing 

Supplement.

8.5 Compression of Self Referencing Transactions

Where the CCM acts as Matched Buyer and Matched Seller in respect of fungible Single Name 

Cleared Transactions that have a corresponding CCM Client Transaction in respect of which 

CCM Client has given notice to CCM pursuant to Mandatory Provision 8.2 (Notification of Self 

Referencing Transactions) and the relevant Single Name Cleared Transactions are 

compressed pursuant to Section 9.2 (Occurrence of Client Self Referencing Transactions) of 

the CDS Clearing Supplement, the CCM Client will be deemed to have submitted to CCM a 

request to compress the corresponding CCM Client Transactions.

9. Calculation Agent

9.1 Appointment of Calculation Agent

The Calculation Agent in respect of any CCM Client Transaction shall be the CCM. 

9.2 Calculations and Determinations of Calculation Agent

In the event that the Calculation Agent is entitled or required to make any calculation or 

determination in respect of a CCM Client Transaction in respect of a matter that has already 

been or will be determined in respect of and pursuant to the terms of the corresponding CCM 

Client Cleared Transaction, the Calculation Agent in respect of the CCM Client Transaction 

shall be obliged to make the same calculation or determination in respect of such CCM Client 

Transaction as the determination in respect of the corresponding CCM Client Cleared 

Transaction (including, without limitation, any determination of any Cash Settlement Amount 

payable in respect of the CCM Client Transaction). 

10. Amendments

The Mandatory Provisions may be amended from time to time pursuant to Section 11

(Amendments) of the CDS Clearing Supplement. The parties agree that any amendments 

made to the Mandatory Provisions in accordance with Section 11 (Amendments) of the CDS 

Clearing Supplement shall be deemed to apply automatically to the CCM Client Transaction(s) 

with effect from the date of such amendment to the Mandatory Provisions.
File No. SR-LCH SA-2022-004

Page 128 of 429

LCH SA © 2021 Published on 30 July 2021

PART B

CDS CLEARING SUPPLEMENT

FOR INDEX CLEARED TRANSACTIONS AND SINGLE NAME TRANSACTIONS INCORPORATING THE 

2014 ISDA CREDIT DERIVATIVES DEFINITIONS

CONTENTS

SECTION PAGE

1. GENERAL PROVISIONS ...................................................................................................................... 129

2. TERMS OF CLEARED TRANSACTIONS ........................................................................................... 141

3. PAYMENTS AND DELIVERIES .......................................................................................................... 149

4. CREDIT EVENTS, SUCCESSION EVENTS AND RENAME EVENTS............................................. 150

5. RESTRUCTURING ................................................................................................................................ 154

6. PHYSICAL SETTLEMENT ................................................................................................................... 156

7. DELIVERY OF NOTICES AND FALLBACKS.................................................................................... 169

8. MATCHED PAIR DESIGNATIONS AND NOTICES .......................................................................... 178

9. SELF-REFERENCING TRANSACTIONS ............................................................................................ 182

10. MANDATORY PROVISIONS FOR CCM CLIENT TRANSACTIONS .............................................. 185

11. AMENDMENTS ..................................................................................................................................... 186

12. FORMS OF NOTICES............................................................................................................................ 186

13. EXCLUSION OF LIABILITY ................................................................................................................ 186

14. DISPUTE RESOLUTION ....................................................................................................................... 187

15. GOVERNING LAW................................................................................................................................ 187
LCH SA © 2021 129 Published on 30 July 2021[●]

1. GENERAL PROVISIONS

1.1 Incorporation of Defined Terms 

Capitalised terms used in this CDS Clearing Supplement and not otherwise defined herein 

shall have the meaning given pursuant to the Index Cleared Transaction Confirmation, Single 

Name Cleared Transaction Confirmation, the 2014 ISDA Credit Derivatives Definitions or the 

CDS Clearing Rule Book, as applicable. In the case of any such terms defined in the CDS 

Clearing Rule Book, such terms shall be interpreted in accordance with the governing law 

specified therefore in the CDS Clearing Rule Book. 

1.2 Terms defined in the CDS Clearing Supplement

For the purposes of the CDS Clearing Documentation, the following capitalised terms shall, 

unless otherwise specified, have the respective meanings set out below: 

2003 ISDA Credit Derivatives Definitions: The 2003 ISDA Credit Derivatives Definitions 

published by ISDA as supplemented by the 2009 ISDA Credit Derivatives Determinations 

Committees, Auction Settlement and Restructuring Supplement to the 2003 ISDA Credit 

Derivatives Definitions, including the DC Rules and Credit Derivatives Auction Settlement 

Terms (each as defined therein).

2014 ISDA Credit Derivatives Definitions: The 2014 ISDA Credit Derivatives Definitions

published by ISDA.

Affected Cleared Transaction: Following 

(i) a DC Credit Event Announcement or a publication by the DC Secretary of: 

(a) a Successor Resolution; or

(b) a DC Resolution that a Substitute Reference Obligation has been determined in 

respect of a Non-Standard Reference Obligation; or

(ii) publication of a revised SRO List,

a Cleared Transaction (or the relevant Component Transaction(s) of such Cleared 

Transaction) that references the affected Reference Entity and also references a Transaction 

Type and/or a Reference Obligation affected by the event in (i) or (ii) above, as applicable.

Asset Package Cash Settlement Amount: In respect of an Asset Package, an amount in the 

Settlement Currency of the Physically Settled Cleared Transaction to which such Asset 

Package relates equal to the total amount of cash in such Settlement Currency (whether 

actual or deemed in accordance with Section 6.19(e) (Asset Package Delivery) comprising 

such Asset Package.

Asset Package Notice: A notice in the form set out in Appendix IVB.

Buy-in Effective Date: As set out at Section 6.8 (Buy-in of Bonds – Matched Seller has entered 

into CCM Client Transaction).
LCH SA © 2021 130 Published on 30 July 2021[●]

CCM Client Cleared Transaction: A Cleared Transaction between a CCM and LCH SA 

registered in a CCM Client Trade Account of a CCM.

CCM Client Transaction: A Transaction between a CCM and a CCM Client which is on the 

same economic terms as its corresponding CCM Client Cleared Transaction.

CCM Client Transaction Documents: The documentation entered into by a CCM and its CCM 

Client to document a CCM Client Transaction.

CDSClear Preferred Reference Obligation: This term shall have the meaning set out in Section 

4 of the Procedures.

CDSClear Product Committee: A committee composed of representatives of LCH SA and 

representatives of Clearing Members for the purposes of carrying-out the tasks apportioned 

to it by the CDS Clearing Documentation as further described in the terms of reference for 

such committee, agreed in consultation with the Clearing Members and as may be amended 

from time to time in consultation with the Clearing Members. 

CDS Clearing Rule Book: The document entitled "CDS Clearing Rule Book" published by LCH 

SA, as amended from time to time.

CDS Type: A class of Cleared Transactions that are identical as to their terms, except that 

they may differ as to: 

(a) the Trade Date;

(b) in respect of Index Cleared Transactions, the Original Notional Amount;

(c) in respect of Single Name Cleared Transactions, the Effective Date (provided that the 

current and future Fixed Rate Payer Calculation Periods for such Single Name Cleared 

Transactions are the same), the Floating Rate Payer Calculation Amount and the 

Reference Obligation (provided that LCH SA determines that the Reference 

Obligations of the Cleared Transactions are equivalent for the purposes of this CDS 

Clearing Supplement);

(d) the Initial Payment Payer; 

(e) the Initial Payment Amount; 

(f) the Initial Payment Date; and

(g) the identity of the relevant Buyer and Seller.

CEN Triggering Period: In relation to any Restructuring Cleared Transaction, the period during 

which the parties thereto may deliver a Credit Event Notice in respect of an M(M)R 

Restructuring in relation to all or part of such Restructuring Cleared Transaction, such period 

starting at 9:00 a.m. on and including the earlier to occur of:

(a) the Transaction Business Day following publication of the related Final List; and
LCH SA © 2021 131 Published on 30 July 2021[●]

(b) the fifth calendar day following the No Auction Announcement Date,

and ending on and including the Exercise Cut-off Date.

Clearing Member Acknowledgement: As set out at Section 7.7 (Clearing Member 

Acknowledgements).

Clearing Member Communications Failure Event: As set out at Section 7.4 (Notification of 

DTCC Failure and Resolution).

Clearing Member Self Referencing Transaction: A Single Name Cleared Transaction which is 

registered in the House Account Structure of the Clearing Member and in respect of which, 

the Reference Entity is either the relevant Clearing Member or an Affiliate of such Clearing 

Member.

Client Self Referencing Transaction: A Single Name Cleared Transaction (a) that is registered 

in the Client Account Structure of a Clearing Member, and (b) in respect of which, the 

Reference Entity is either the relevant Client or an Affiliate of such Client.

Component Transaction: As defined in the Index Cleared Transaction Confirmation.

Compression Cut-off Date: The last date on which a Clearing Member may submit a request 

for any Cleared Transaction to be compressed pursuant to the ad hoc compression 

methodology and on which a daily automatic compression cycle will be run by LCH SA, in each 

case in accordance with Chapter 3 (Compression) of Title III (Clearing Operations) of the CDS 

Clearing Rule Book and Section 5 of the Procedures, being:

(a) in respect of any Index Cleared Transaction, the date falling one Transaction Business 

Day prior to the Novation Cut-off Date in respect of the relevant Eligible Index Version;

(b) in respect of any Single Name Cleared Transaction and:

(i) an M(M)R Restructuring, the earlier of (A) the date of publication of the 

relevant Initial List (as defined in the DC Rules), (B) the date falling two 

Transaction Business Days prior to the relevant date on which the related RMP 

Notification Deadline falls and (C) such other date falling between the dates in 

(A) and (B), as determined by LCH SA in consultation with the CDSClear Product 

Committee and notified to the relevant Clearing Members prior to such date; 

and

(ii) a Failure to Pay Credit Event, a Governmental Intervention Credit Event, a 

Bankruptcy Credit Event or a Restructuring Credit Event (other than an M(M)R 

Restructuring), the date falling one Transaction Business Day prior to the 

calendar day following the related Auction Final Price Determination Date,

Auction Cancellation Date or No Auction Announcement Date; 

(iii) a Succession Event, a date determined by LCH SA in consultation with the 

CDSClear Product Committee, which shall be not later that the Transaction 

Business Day before the date on which DTCC will amend its records in respect 
LCH SA © 2021 132 Published on 30 July 2021[●]

of such Single Name Cleared Transaction to take into account the occurrence 

of such Succession Event, and notified to the relevant Clearing Members prior 

to such date; and

(iv) a Rename Event, the Transaction Business Day before the date on which DTCC 

will amend its records in respect of Single Name Cleared Transactions to take 

into account the occurrence of such Rename Event.

For the avoidance of doubt, where a Clearing Member has specified automatic compression 

on a weekly basis then the last such weekly automatic compression cycle performed by LCH 

SA will be performed on the Clearing Day falling on the Thursday on or before the relevant 

Compression Cut-off Date.

DC Restructuring Announcement Date: The date on which the DC Credit Event 

Announcement of an M(M)R Restructuring is made, provided that where such DC Credit Event 

Announcement is made after 6.30 p.m. on a Business Day or on a day which is not a Business 

Day, the DC Restructuring Announcement Date will be the first following Business Day.

Deemed Buy-in Period: As set out at Section 6.8(b)(i). 

Dispute: This term shall have the meaning set out in the CDS Dispute Resolution Protocol.

DTCC Failure Event: As set out at Section 7.4 (Notification of DTCC Failure and Resolution). 

DTCC Failure Event Time: As set out at Section 7.4 (Notification of DTCC Failure and 

Resolution).

DTCC Notice Facility: A facility made available pursuant to the DTCC Rules for the delivery of 

Credit Event Notices relating to M(M)R Restructurings or Notices to Exercise Movement 

Option.

DTCC Resolution Time: As set out at Section 7.4 (Notification of DTCC Failure and Resolution).

DTCC Rules: The "Operating Procedures", as published by DTCC and as amended from time 

to time.

Failed Amount: As set out at Section 6.10 (Failure to pay Physical Settlement Amount). 

First Novation Date: In respect of: 

(a) an Index Cleared Transaction, the first date on which LCH SA will accept Original 

Transactions referencing the relevant Eligible Index Version for clearing pursuant to 

the CDS Clearing Documentation, being, in the case of any such version published 

pursuant to the occurrence of a Succession Event or Credit Event, the date on which 

credit default swap transactions referencing such version of such index are accepted 

for registration in the TIW in accordance with the DTCC Rules; 

(b) a Single Name Cleared Transaction in respect of which a Novation Cut-off Date has 

previously occurred pursuant to the occurrence of an M(M)R Restructuring which is 

applicable to the relevant combination of Reference Entity, Transaction Type and 
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Reference Obligation, the calendar day following the Transaction Business Day 

following the latest possible Exercise Cut-off Date for the relevant M(M)R

Restructuring or such other date on which LCH SA determines in consultation with the 

CDSClear Product Committee that LCH SA will begin to again accept Original 

Transactions referencing the relevant combination of Reference Entity, Transaction 

Type and Reference Obligation; and

(c) a Single Name Cleared Transaction (other than in the circumstances set-out in (b)

above), the first date on which LCH SA determines in consultation with the CDSClear 

Product Committee that LCH SA will accept or will begin to again accept (as applicable) 

Original Transactions referencing the relevant combination of Reference Entity, 

Transaction Type and Reference Obligation.

Index Cleared Transaction: A Cleared Transaction which references a portfolio of Reference 

Entities specified in a credit default swap index and consists of a Component Transaction in 

respect of each such Reference Entity, the terms of which are as evidenced by an Index 

Cleared Transaction Confirmation.

Index Cleared Transaction Confirmation: For 

(a) any Index Cleared Transaction which references a Markit iTraxx® Australia Index Series 

27 or above, the form of confirmation which incorporates the iTraxx® Asia/Pacific

Untranched Standard Terms Supplement, each being the latest version in force, as 

published by Markit Group Limited;

(a)(b) any Index Cleared Transaction which references a Markit iTraxx® Europe Index Series 

22 or above, the form of confirmation which incorporates the iTraxx® Europe 

Untranched Standard Terms Supplement, each being the lastest version in force on or 

any time after to the Implementation Date (as defined in the 2019 ISDA Narrowly 

Tailored Credit Event Protocol published by ISDA on 27 August 2019 and as further 

supplemented from time to time) as published by Markit Group Limited;

(b)(c) any Index Cleared Transaction which references a Markit CDXTM Index Series 23 or 

above, the form of confirmation which incorporates the CDX Untranched Transactions 

Standard Terms Supplement, each being the latest version in force on or any time after

the Implementation Date (as defined in the 2019 ISDA Narrowly Tailored Credit Event 

Protocol published by ISDA on 27 August 2019 and as further supplemented from time 

to time) as published by Markit North America, Inc.;

(c)(d) any Index Cleared Transaction which references a Markit iTraxx® Europe Index Series 

21 or below, the form of confirmation which incorporates the iTraxx® Europe Legacy 

Untranched Standard Terms Supplement, each being the latest version in force on or 

any time after the Implementation Date (as defined in the 2019 ISDA Narrowly 

Tailored Credit Event Protocol published by ISDA on 27 August 2019 and as further 

supplemented from time to time) as published by Markit Group Limited; and

(d)(e) any Index Cleared Transaction which references a Markit CDXTM Index Series 22 or 

below, the form of confirmation which incorporates the CDX Legacy Untranched 
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Transactions Standard Terms Supplement, each being the latest version in force on or 

any time after the Implementation Date (as defined in the 2019 ISDA Narrowly 

Tailored Credit Event Protocol published by ISDA on 27 August 2019 and as further 

supplemented from time to time) as published by Markit North America, Inc., 

in each case as amended by this CDS Clearing Supplement and as completed by reference to 

the relevant Transaction Data (or, in each case, such other form of confirmation as may be 

adopted in respect of any CDS Type in accordance with Section 1.2.2 (Modification) of the 

CDS Clearing Rule Book).

Index CCM Client Transaction: A CCM Client Transaction which references a portfolio of 

Reference Entities specified in a credit default swap index and consists of a Component 

Transaction in respect of each such Reference Entity and which is on the same economic 

terms as an Index Cleared Transaction registered in the CCM Client Trade Account in the 

name of such CCM for such CCM Client.

Initial Re-couponing Notice: As set-out in Section 4.4 (Re-couponing of Restructuring Cleared 

Transactions).

Initial Single Name Cleared Transaction: A Cleared Transaction entered into following the

novation of an Original Transaction and which references a single Reference Entity, the terms 

of which are evidenced by a Single Name Cleared Transaction Confirmation. 

Initial Single Name CCM Client Transaction: A CCM Client Transaction which references a 

single Reference Entity and which is on the same economic terms as an Initial Single Name 

Cleared Transaction registered in the CCM Client Trade Account in the name of such CCM for 

such CCM Client.

ISDA: The International Swaps and Derivatives Association, Inc. and any successor thereto.

Mandatory Provisions: As set-out in Appendix XIII (CCM Client Transaction Requirements).

Matched Buyer: A CDS Buyer comprised in a Matched Pair. 

Matched Buyer Contract: A Cleared Transaction (or part thereof) between a Matched Buyer 

and LCH SA which is the subject of a Matched Pair having the Restructuring Matched Pair 

Amount or the Settlement Matched Pair Delivery Amount, as the case may be, relating to 

that Matched Pair.

Matched Contract: A Matched Seller Contract or a Matched Buyer Contract, as applicable.

Matched Pair: A Restructuring Matched Pair or Settlement Matched Pair, as applicable.

Matched Seller: A CDS Seller comprised in a Matched Pair. 

Matched Seller Contract: A Cleared Transaction (or part thereof) between a Matched Seller 

and LCH SA which is the subject of a Matched Pair having the Restructuring Matched Pair 

Amount or the Settlement Matched Pair Delivery Amount, as the case may be, relating to 

that Matched Pair.
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Matching Information Notification Deadline: In respect of a Restructuring Cleared 

Transaction, 9.00 a.m. on the first day of the CEN Triggering Period, provided that the 

Matching Information Notification Deadline shall fall no earlier than the fifth Transaction 

Business Day following the relevant DC Credit Event Announcement.

Matrix Re-versioning Date: As set-out in Section 2.5 (Physical Settlement Matrix Updates).

NEMO Triggering Period: In relation to any Restructuring Cleared Transaction, the period 

starting at 9:00 a.m. on the day falling on the relevant Movement Option Cut-off Date for the 

relevant Credit Event and ending at the last time for delivery of a valid Notice to Exercise 

Movement Option under the terms of the relevant Cleared Transaction.

No Physical Settlement Confirmation: As set out in Section 6.19 (Miscellaneous Provisions 

relating to Physical Settlement).

No Physical Settlement Confirmation Deadline: As set out in Section 6.19 (Miscellaneous 

Provisions relating to Physical Settlement).

Non-Deliverable Obligation: As set out at Section 6.12 (Fallback to Cash Settlement in respect 

of Non-Deliverable Obligations).

Non-DVP Asset Package Settlement Amount: As set out in Section 6.6(b) (Delivery of NonDVP Obligations).

Non-DVP Obligation: In respect of any Physically Settled Cleared Transaction: (1) a 

Deliverable Obligation, validly specified in a Notice of Physical Settlement, which does not, in 

accordance with then current market standards, settle on a delivery-versus-payment basis 

through the books and records of a central securities depository or securities settlement 

system; or (2) any Asset forming part of an Asset Package validly specified in an Asset Package 

Notice given in accordance with the final paragraph of Section 8.2 (Notice of Physical 

Settlement) of the 2014 ISDA Credit Derivatives Definitions.

Notice Acknowledgement Deadline: As set out in Section 7.7 (Clearing Member 

Acknowledgements).

Notice Reconciliation Deadline: As set out in Section 7.7 (Clearing Member 

Acknowledgements).

Novation Cut-off Date: The date with effect from which LCH SA will no longer accept Original 

Transactions referencing an Eligible Index Version or Original Transactions referencing the 

relevant combination of Reference Entity, Transaction Type and Reference Obligation for 

novation, being:

(a) following the occurrence of an M(M)R Restructuring, the earlier of: 

(i) a date determined by LCH SA in consultation with the CDSClear Product 

Committee, which shall not be earlier than the DC Restructuring 

Announcement Date; and
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(ii) the calendar day immediately following the No Auction Announcement Date,

provided that LCH SA in consultation with the CDSClear Product Committee may, but 

is not required to, determine that the Novation Cut-off Date for Index Cleared 

Transactions and the Novation Cut-off Date for Initial Single Name Cleared 

Transactions are to occur on different days;

(b) following the occurrence of a Failure to Pay Credit Event, a Bankruptcy Credit Event, a 

Governmental Intervention Credit Event or a Restructuring Credit Event (other than 

an M(M)R Restructuring), the calendar day following the related Auction Final Price 

Determination Date, Auction Cancellation Date or No Auction Announcement Date, as 

applicable; 

(c) following the occurrence of a Succession Event: 

(i) in respect of an Index Cleared Transaction, the date notified by DTCC to LCH SA 

as being the date on which DTCC will amend its records in respect of such 

Cleared Transaction to take into account a new version of such index published 

by the relevant index publisher taking into account the occurrence of such

Succession Event; or

(ii) in respect of a Single Name Cleared Transaction, the day after the date on 

which the DC Secretary publicly announces a Succession Resolution in respect 

of such Succession Event; 

(d) following the occurrence of a Rename Event in respect of Single Name Cleared 

Transactions, the date determined by LCH SA in consultation with the CDSClear 

Product Committee, which such date shall not be later than the date on which DTCC 

amends its records in respect of Single Name Cleared Transactions to take into account 

the occurrence of such Rename Event; or

(e) otherwise, as determined by LCH SA in consultation with the CDSClear Product 

Committee. 

Partial Cash Settlement Terms: As set out in Section 9.6 (Partial Cash Settlement Terms) of 

the 2014 ISDA Credit Derivatives Definitions, as amended by this CDS Clearing Supplement. 

Payer: As set out at Section 6.17 (Physical Settlement Costs). 

Physical Settlement Confirmation: As set out in Section 6.19 (Miscellaneous Provisions 

relating to Physical Settlement).

Physical Settlement Confirmation Deadline: As set out in Section 6.19 (Miscellaneous 

Provisions relating to Physical Settlement).

Physically Settled Cleared Transaction: As set out at Section 6.3 (Physically Settled Cleared 

Transactions).
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Physical Settlement Matrix: The Credit Derivatives Physical Settlement Matrix (as defined in 

Section 13.2 (Credit Derivatives Physical Settlement Matrix) of the 2014 ISDA Credit 

Derivatives Definitions).

Recipient: As set out at Section 6.17 (Physical Settlement Costs). 

Re-couponing Date: As set-out in Section 4.4 (Re-couponing of Restructuring Cleared 

Transactions).

Re-couponing Notice: As set-out in Section 4.4 (Re-couponing of Restructuring Cleared 

Transactions).

Relevant Physical Settlement Matrix: As set out in Section 4.3 (Eligible Reference Entities) of 

the Procedures.

Rename Event: As set out in Section 4.7 (Rename Events).

Restructuring Cleared Transaction: A Cleared Transaction which references a single 

Reference Entity and is created following the creation of Restructuring Matched Pairs 

pursuant to Section 5.2 (Creation of Restructuring Cleared Transactions), the terms of which 

are evidenced by a Single Name Cleared Transaction Confirmation. 

Restructuring CCM Client Transaction: A CCM Client Transaction between a CCM and a CCM 

Client which references a single Reference Entity and which is on the same economic terms 

as a Restructuring Cleared Transaction registered in the CCM Client Trade Account in the 

name of such CCM for such CCM Client.

Restructuring Matched Pair: A pairing comprised of a Matched Buyer and a Matched Seller 

in respect of Restructuring Cleared Transactions created by LCH SA for the purposes of 

delivery of Credit Event Notices in respect of the relevant M(M)R Restructuring under Section 

5.1 (Creation and Notification of Restructuring Matched Pairs).

Restructuring Matched Pair Amount: In respect of a Restructuring Matched Pair, the amount 

of the Floating Rate Payer Calculation Amount in respect of the relevant Restructuring 

Cleared Transactions allocated by LCH SA to such Restructuring Matched Pair under Section 

8.1 (Creation of Matched Pairs).

Resulting Single Name Cleared Transaction: A Cleared Transaction which references a single 

Reference Entity and is created following the termination of a Restructuring Cleared 

Transaction pursuant to Section 5.15 (Recouponing) of the Procedures, the terms of which 

are evidenced by a Single Name Cleared Transaction Confirmation.

RMP Notification Deadline: In respect of a notification by LCH SA to the relevant Clearing 

Members in relation to Restructuring Matched Pairs, 10.00 a.m. on the Transaction Business 

Day immediately prior to the first day of the CEN Triggering Period provided that the RMP 

Notification Deadline shall in no event fall prior to the second Transaction Business Day 

following the occurrence of the related DC Credit Event Announcement.
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Self Referencing Transaction: A Clearing Member Self Referencing Transaction or a Client Self 

Referencing Transaction, as applicable.

Settlement Matched Pair: A pairing comprised of a Matched Buyer and a Matched Seller in 

respect of Physically Settled Cleared Transactions deemed to have been created by LCH SA 

under Section 6.2 (Creation and Notification of Settlement Matched Pairs).

Settlement Matched Pair Delivery Amount: In respect of a Settlement Matched Pair, the 

amount of the Floating Rate Payer Calculation Amount in respect of the relevant Physically 

Settled Cleared Transactions allocated by LCH SA to such Settlement Matched Pair under 

Section 8.1 (Creation of Matched Pairs).

Single Name Cleared Transaction: An Initial Single Name Cleared Transaction, a Spin-off 

Single Name Cleared Transaction, a Restructuring Cleared Transaction and a Resulting Single 

Name Cleared Transaction. 

Single Name Cleared Transaction Confirmation: The form of confirmation for use with the 

Physical Settlement Matrix that incorporates the 2014 ISDA Credit Derivatives Definitions, as 

amended by this CDS Clearing Supplement and as completed by reference to: 

(a) in the case of an Initial Single Name Cleared Transaction, the relevant Transaction 

Data; or 

(b) in the case of any other type of Single Name Cleared Transaction, the relevant Cleared 

Transaction or Cleared Transactions that existed immediately prior to the relevant 

event that resulted in the creation of such Single Name Cleared Transaction (with such 

amendments as are required pursuant to the terms of the CDS Clearing 

Documentation),

or such other form of confirmation as may be adopted in respect of any CDS Type in 

accordance with Section 1.2.2 (Modification) of the CDS Clearing Rule Book.

Single Name CCM Client Transaction: A CCM Client Transaction between a CCM and a CCM 

Client which is on the same economic terms as a Single Name Cleared Transaction registered 

in the CCM Client Trade Account in the name of such CCM for such CCM Client.

SMP Notification Deadline: In respect of a notification by LCH SA to the relevant Clearing 

Members in relation to Settlement Matched Pairs, noon on the Transaction Business Day 

following the day on which the Fallback Settlement Method first becomes applicable.

Spin-off Single Name Cleared Transaction: The separate Single Name Cleared Transaction 

formed in respect of a Reference Entity from a Component Transaction of an Index Cleared 

Transaction following the occurrence of a DC Credit Event Announcement in respect of an 

M(M)R Restructuring which is applicable to the combination of Reference Entity, Transaction 

Type and Reference Obligation of such Component Transaction in accordance with the terms 

of such Index Cleared Transaction, the terms of which are evidenced by a Single Name Cleared 

Transaction Confirmation.
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Succession Event: An entity (or entities) constitute a successor or successors in respect of a 

Reference Entity as determined pursuant to Section 2.2 (Provisions for Determining a 

Successor) of the 2014 ISDA Credit Derivative Definitions.

Successor Resolution: This term shall have the meaning set out in the DC Rules.

Transaction Business Day: A "Business Day", as defined in the Index Cleared Transaction 

Confirmation or the Single Name Cleared Transaction Confirmation, as applicable. 

Transaction Data: In respect of an Original Transaction to be novated pursuant to Title III 

(Clearing Operations) of the CDS Clearing Rule Book and cleared by LCH SA as an Index Cleared 

Transaction or Initial Single Name Cleared Transaction, the data provided by an Approved 

Trade Source System to LCH SA for such purposes, which includes, without limitation:

(a) in respect of an Index Cleared Transaction, the relevant index, including details of the 

index name, series and version, the annex date, the Original Notional Amount and the 

currency of the Original Notional Amount; 

(b) in respect of an Initial Single Name Cleared Transaction, the Reference Entity, 

Reference Obligation, applicable Transaction Type, Floating Rate Payer Calculation 

Amount, the currency of the Floating Rate Payer Calculation Amount and the Fixed 

Rate;

(c) the Trade Date;

(d) the Scheduled Termination Date;

(e) the Floating Rate Payer;

(f) the Fixed Rate Payer;

(g) the Fixed Rate Payer Payment Dates;

(h) the Initial Payment Payer; 

(i) the Initial Payment Amount; and

(j) whether the 2003 Credit Derivatives Definitions or the 2014 Credit Derivatives 

Definitions are applicable to such Original Transaction (or, in the case of an Index 

Cleared Transaction, each component of such Original Transaction).

1.3 Inconsistency

To the extent of any conflict between: 

(a) any definition or provision contained in Appendix 1 (CDS Default Management 

Process) of the CDS Clearing Rule Book; 

(b) the remaining sections of the CDS Clearing Rule Book; 

(c) the CDS Admission Agreement; 
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(d) this CDS Clearing Supplement; 

(e) an Index Cleared Transaction Confirmation or a Single Name Cleared Transaction 

Confirmation; 

(f) the Procedures; or 

(g) any Clearing Notices, 

the first referenced document shall prevail except in relation to determining the existence 

and amount of any payment and delivery obligations under any Cleared Transactions, in 

respect of which this CDS Clearing Supplement, the Index Cleared Transaction Confirmation 

or the Single Name Cleared Transaction Confirmation, as applicable, shall prevail to the extent 

permitted by law.

1.4 Timing

Pursuant to Article 1.2.8 (Time reference) of the CDS Clearing Rule Book, any reference to a 

time of day herein shall be deemed to be a reference to Central European Time unless 

otherwise provided herein.

1.5 Third Party Rights

Unless otherwise provided in this CDS Clearing Supplement or in the CDS Clearing Rulebook, 

a person who is not a party to a Cleared Transaction does not have any right under the 

Contracts (Rights of Third Parties) Act 1999 to enforce any provision of such Cleared 

Transaction or this CDS Clearing Supplement as it relates to such Cleared Transaction.

1.6 Recording of Conversations

Each of LCH SA and each Clearing Member consents to the recording of telephone 

conversations between the trading, marketing and other relevant personnel of the parties in 

connection with any Cleared Transaction and agrees to obtain any necessary consent of, and 

give any necessary notice of such recording to, its relevant personnel and agrees, to the 

extent permitted by applicable law, that such recordings may be submitted as evidence in 

any related court or arbitral proceedings. 

1.7 Application to FCM/BD Clearing Members

(a) Upon the taking of any action pursuant to this CDS Clearing Supplement by an 

FCM/BD Clearing Member in respect of an FCM/BD Cleared Transaction entered into 

as agent for the account of an FCM/BD Client (as described in FCM/BD CDS Clearing 

Regulation 1(c)), such FCM/BD Clearing Member shall be deemed to represent to LCH 

SA that it has the power and authority to, and has been duly authorised to, take such 

action for the account of such FCM/BD Client.

(b) For purposes of this CDS Clearing Supplement, with regard to any Cleared Transaction 

entered into by an FCM/BD Clearing Member acting as agent for the account of an 

FCM/BD Client (as described in FCM/BD CDS Clearing Regulation 1(c)):
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(i) references herein to “CDS Buyer” or “CDS Seller”, as the case may be, shall be 

understood to be references to such FCM/BD Client (which shall not, for the 

avoidance of doubt, prejudice LCH SA’s right to deal solely with the FCM/BD

Clearing Member pursuant to Article 6.1.1.3(vi) of the CDS Clearing Rule Book); 

and

(ii) references herein to: (1) a Clearing Member entering into a Cleared Transaction 

with LCH SA; and (2) a Clearing Member forming part of a Matched Pair, shall 

each be understood as such FCM/BD Clearing Member acting as agent for the 

account of such FCM/BD Client (as described in FCM/BD CDS Clearing 

Regulation 1(c)).

2. TERMS OF CLEARED TRANSACTIONS

2.1 General Terms of Cleared Transactions 

(a) Terms of Index Cleared Transactions and Initial Single Name Cleared Transactions

(i) Upon novation of an Original Transaction at the Novation Time in accordance 

with Title III (Clearing Operations) of the CDS Clearing Rule Book, each resulting 

Index Cleared Transaction or Initial Single Name Cleared Transaction is entered 

into by LCH SA and the relevant Clearing Member on the terms of the related 

Index Cleared Transaction Confirmation or Single Name Cleared Transaction 

Confirmation (as applicable); 

(ii) Each Component Transaction of an Index Cleared Transaction which references 

a Markit iTraxx® Europe Index Series 21 or below or a Markit CDXTM Index Series 

22 or below to which Section A of the relevant Index Cleared Transaction 

Confirmation applies shall be subject to the terms of Part A of this CDS Clearing 

Supplement; and

(iii) Each Component Transaction of an Index Cleared Transaction which references 

a Markit iTraxx® Europe Index Series 21 or below or a Markit CDXTM Index Series 

22 or below to which Section B of the relevant Index Cleared Transaction 

Confirmation applies shall be subject to the terms of Part B of this CDS Clearing 

Supplement.

(b) Terms of Spin-off Single Name Cleared Transactions, Restructuring Cleared 

Transactions and Resulting Single Name Cleared Transactions

If any Spin-off Single Name Cleared Transaction is deemed to have been entered into 

by the parties in accordance with the terms of any Index Cleared Transaction or if any 

Restructuring Cleared Transaction is created pursuant to Section 5.2 (Creation of 

Restructuring Cleared Transactions) or if any Resulting Single Name Cleared 

Transaction is created pursuant to Section 5.15 (Recouponing) of the Procedures, such 

Spin-off Single Name Cleared Transaction, Restructuring Cleared Transaction or 

Resulting Single Name Cleared Transaction is entered into by LCH SA and the relevant 

Clearing Member on the terms of the related Single Name Cleared Transaction 

Confirmation.
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(c) Trade Date of Cleared Transactions following Compression

Notwithstanding paragraphs (a) and (b) above, where Cleared Transactions are subject 

to compression in accordance with Chapter 3 (Compression) of Title III (Clearing 

Operations) of the CDS Clearing Rule Book, the Trade Date of any resulting Cleared 

Transaction(s) shall be, in respect of any Cleared Transaction subject to:

(i) ad hoc compression (as described in Chapter 3 (Compression) of Title III 

(Clearing Operations) of the CDS Clearing Rule Book), the date on which the 

request for compression was effectively received and processed in accordance 

with Section 5 of the Procedures, which shall be: 

(A) the Clearing Day on which such request is submitted and uploaded by 

the relevant Clearing Member provided that such request for 

compression was received by LCH SA before 7.00 p.m. on such Clearing 

Day (if such request is submitted and uploaded by the relevant Clearing 

member via any means of access specified in a Clearing Notice) or 5.00 

p.m. (if such request is not submitted via any means of access specified 

in a Clearing Notice in the case of a disruption of the relevant means of 

access); 

(B) the Clearing Day on which such request is submitted if such request is 

not submitted via any means of access specified in a Clearing Notice in 

the case of disruption of the relevant means of access and is submitted 

after 5.00 p.m. but LCH SA, in its sole discretion, processes such request 

on the Clearing Day on which such request is submitted; and 

(C) unless the relevant Clearing Member instructs the Operations 

Department to withdraw such request, the Clearing Day following the 

Clearing Day on which such request is submitted if such request is not 

submitted via any means of access specified in a Clearing Notice in the 

case of disruption of the relevant means of access and is submitted after 

5.00 p.m. and LCH SA, in its sole discretion, does not process such 

request on the Clearing Day on which such request is submitted; or

(ii) automatic compression (as described in Chapter 3 (Compression) of Title III 

(Clearing Operations) of the CDS Clearing Rule Book), the Clearing Day on which 

such Cleared Transaction is automatically compressed by LCH SA in accordance 

with Section 5 of the Procedures.

2.2 Index Cleared Transaction Confirmation

The Index Cleared Transaction Confirmation is amended, supplemented and completed as 

follows:

(a) (i) if the Index Cleared Transaction references a Markit iTraxx® Australia Index or a 

Markit iTraxx® Europe Index, by deleting the words "between [⚫] (Party A) and [⚫] 

(Party B)" in the third line of the first paragraph; and
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(ii) if the Index Cleared Transaction references a Markit CDXTM Index, by deleting the 

words "between [Party A] ("Party A") and [counterparty's name] ("Party B")" in the 

third and fourth lines of the first paragraph,

and in each case replacing them with:

"between LCH SA ("Party A") and Clearing Member, as identified in the relevant CDS 

Admission Agreement between such Clearing Member and Party A ("Party B")";

(b) (i) if the Index Cleared Transaction references a Markit iTraxx® Australia Index or a 

Markit iTraxx® Europe Index Series 22 or above, by deleting the fourth paragraph 

thereof (or, for Markit iTraxx® Europe Series 21 or below, the fifth paragraph thereof);

and

(ii) if the Index Cleared Transaction references a Markit CDXTM Index, by deleting the 

third paragraph thereof,

and in each case replacing it with the following: 

"This Confirmation supplements, forms a part of, and is subject to, the CDS Clearing 

Documentation, as defined in the CDS Clearing Rule Book.";

(c) if the Index Cleared Transaction references a Markit iTraxx® Australia Index or a 

Markit iTraxx® Europe Index Series 22 or above, by deleting the fifth paragraph 

thereof (or, for Markit iTraxx® Europe Series 21 or below, the sixth paragraph thereof) 

and replacing it with the following:

"The terms of the iTraxx® Master Transaction, which is an Index Cleared Transaction, 

to which this Confirmation relates are as follows:";

(d) if the Index Cleared Transaction references a Markit CDXTM Index, by deleting the 

fourth paragraph thereof and replacing it with the following: 

"The terms of the Master Transaction, which is an Index Cleared Transaction, to which 

this Confirmation relates are as follows:";

(e) by specifying that the “Calculation Agent” is Party A;

(f) by inserting the following “Additional terms”: 

(i) if the Index Cleared Transaction references a Markit iTraxx® Australia Index or

a Markit iTraxx® Europe Index Series 22 or above:

"The Standard Terms Supplement is amended for the purposes of this 

Transaction: 

(a) by deleting in its entirety the last paragraph of the definition of 

"Reference Obligation", beginning "If there is no Standard Reference 

Obligation and the Index Sponsor..." and deleting the words "and the 
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following paragraph:" from the first paragraph of the definition of 

"Reference Obligation"; and 

(b) by deleting paragraph 5.5 (De Minimis Cash Settlement) in its entirety";

(ii) if the Index Cleared Transaction references a Markit iTraxx® Europe Index 

Series 21 or below:

"The Legacy Standard Terms Supplement is amended for the purposes of this 

Transaction by deleting paragraph 5.4 (De Minimis Cash Settlement) of Section 

A and Section B in its entirety";

(iii) if the Index Cleared Transaction references a Markit CDXTM Index Series 23 or 

above:

"The CDX Untranched Terms is amended for the purposes of this Transaction 

by deleting paragraph 5.6 (De Minimis Cash Settlement) in its entirety and by 

deleting paragraph 5.2 (Monoline Insurer as Reference Entity) in its entirety and 

replacing it with the following:

The “Additional Provisions for Monoline Insurer Reference Entities”, published 

on September 15, 2014, are incorporated by reference herein and shall be 

applicable to each Reference Entity that is identified as a “monoline” in the 

Index Annex";

(iv) if the Index Cleared Transaction references a Markit CDXTM Index Series 22 or 

below:

"The CDX Legacy Untranched Terms is amended for the purposes of this 

Transaction by deleting paragraph 5.3 (De Minimis Cash Settlement) of Section 

A and Section B in its entirety and by deleting paragraph 5.1 (Monoline Insurer 

as Reference Entity) of Section B in its entirety and replacing it with the 

following:

The “Additional Provisions for Monoline Insurer Reference Entities”, published

on September 15, 2014, are incorporated by reference herein and shall be 

applicable to each Reference Entity that is identified as a “monoline” in the 

Index Annex.";

(g) by deleting the contact details for notices and the account details; and

(h) by deleting the signature blocks.
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2.3 Single Name Cleared Transaction Confirmation

The Single Name Cleared Transaction Confirmation is amended, supplemented and 

completed as follows:

(a) by deleting the words "between us" from the first paragraph thereof and replacing 

them with:

"between LCH SA ("Party A") and Clearing Member, as identified in the relevant CDS 

Admission Agreement between Clearing Member and Party A ("Party B")";

(b) by deleting the third paragraph thereof and replacing it with the following:

"This Confirmation supplements, forms a part of and is subject to the CDS Clearing 

Documentation, as defined in the CDS Clearing Rule Book.";

(c) by specifying that the “Calculation Agent” is Party A;

(d) notwithstanding the terms of the relevant Original Transaction, Standard Reference 

Obligation is applicable, provided that if there is no Standard Reference Obligation, 

by specifying that the Reference Obligation is the CDSClear Preferred Reference 

Obligation;

(e) by deleting references to the Initial Payment Payer and the Initial Payment Amount 

in part 2 in relation to Single Name Cleared Transactions in respect of which there is 

no Initial Payment Payer and Initial Payment Amount;

(f) by deleting part 4 in its entirety unless the Transaction Type specified in respect of 

the Single Name Cleared Transaction is "North American Corporate" or "Standard 

North American Corporate", in which case part 4 shall be included and "Restructuring:

Not Applicable" shall be specified in part 4;

(g) by deleting parts 5, 6, 7 and 8 in their entirety unless the Reference Entity specified 

in respect of a Single Name Cleared Transaction is a monoline insurer, in which case 

part 6 shall be included and “Additional Provisions for Monoline Insurer Reference 

Entities (September 15, 2014): Applicable” shall be specified in part 6;

(h) by inserting the following provision in the "Additional Terms" section of the 

Confirmation:

"Section 11.4 (Merger of Reference Entity and Seller) of the 2014 Definitions shall not 

apply."; and

(i) by deleting the signature blocks.

2.4 Amendments to 2014 ISDA Credit Derivatives Definitions

(a) For the purposes of this CDS Clearing Supplement, Section 11.2(c)(iv) of the 2014 ISDA 

Credit Derivatives Definitions as incorporated in any Cleared Transaction shall be 

amended such that, where LCH SA is the designator in relation to any Restructuring 
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Cleared Transaction or Physically Settled Cleared Transaction, as applicable, it is 

permitted to designate any relevant CDS Buyer or CDS Seller, as applicable, in 

accordance with Section 8 (Matched Pair Designations and Notices) as its designee, 

notwithstanding that such relevant CDS Buyer or CDS Seller, as applicable, is not its 

Affiliate and for the additional purposes of:

(i) delivering or receiving any Credit Event Notice relating to an M(M)R

Restructuring or Notice to Exercise Movement Option (in each case, to the 

extent not delivered via a DTCC Notice Facility);

(ii) delivering or receiving any Notice of Physical Settlement or NOPS Amendment 

Notice or any Asset Package Notice pursuant to Section 8.2 (Notice of Physical 

Settlement) of the 2014 ISDA Credit Derivatives Definitions;

(iii) making or receiving payment of any Physical Settlement Amount and any costs 

and expenses of Physical Settlement; and

(iv) delivering or receiving any notice and otherwise exercising any rights or 

performing any obligations of LCH SA for the purposes of Sections 9.7 (Buy-in 

of Bonds Not Delivered), 9.8 (Alternative Procedures Relating to Loans Not 

Delivered) or 9.9 (Alternative Procedures Relating to Assets Not Delivered) of 

the 2014 ISDA Credit Derivatives Definitions.

(b) Section 11.2(a) of the 2014 ISDA Credit Derivatives Definitions is amended by deleting 

the words "any master agreement governing the Credit Derivative Transaction" at the 

end thereof and replacing them with the words "the CDS Clearing Documentation".

(c) Section 11.2(c)(ii) of the 2014 ISDA Credit Derivatives Definitions is amended by 

deleting the words "any master agreement governing the Credit Derivative 

Transaction" in the second paragraph thereof and replacing them with the words "the 

CDS Clearing Documentation".

(d) Section 11.2(c)(iii) of the 2014 ISDA Credit Derivatives Definitions is amended by 

deleting both occurrences of the words "a master agreement governing the Credit 

Derivative Transaction" and replacing each with the words "the CDS Clearing 

Documentation".

(e) The Protocol Effectiveness Condition (as defined in the 2019 ISDA Narrowly Tailored 

Credit Event Protocol published by ISDA on 27 August 2019 and as further 

supplemented from time to time (the "2019 NTCE Protocol")) being satisfied, then 

from and including the Implementation Date (as defined in the 2019 NTCE Protocol) 

the amendments set forth in Schedule 1 (Amendments) of the 2019 NTCE Protocol 

shall apply to each Cleared Transaction which incorporates the 2014 ISDA Credit

Derivatives Definitions and each such Cleared Transaction shall be a Protocol Covered 

Transaction for the purposes of the 2019 NTCE Protocol provided that:

(i) the First Novation Date in respect of such Cleared Transaction is prior to the 

Implementation Date;
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(ii) such Cleared Transaction is not an Excluded Transaction (as defined in the 2019 

NTCE Protocol) provided that if such Cleared Transaction relates to more than 

one Reference Entity and would otherwise be a Protocol Covered Transaction 

but for the inclusion of any Affected Portion (as defined in the 2019 NTCE

Protocol) therein, such Affected Portion shall be excluded for the purposes of 

this Section 2.4(e) and the remaining portion of such Cleared Transaction shall 

be deemed to be a Protocol Covered Transaction;

(iii) the Scheduled Termination Date in respect of such Cleared Transaction is on or 

after the Implementation Date; and

(iv) no Event Determination Date has occurred in respect of such Cleared 

Transaction prior to the Implementation Date.

2.5 Physical Settlement Matrix Updates

(a) Publication of Revised Matrix

If ISDA publishes a new version (the "Revised Matrix") of the Physical Settlement 

Matrix that is a Relevant Physical Settlement Matrix in respect of a Reference Entity 

(the "Existing Matrix"), LCH SA will, in consultation with the CDSClear Product 

Committee, determine whether the Existing Matrix and the Revised Matrix are 

fungible for the purposes of Single Name Cleared Transactions referencing the 

relevant combination of Reference Entity, Transaction Type and Reference Obligation. 

If there are any changes between the terms of the Revised Matrix and the Existing 

Matrix that would apply to Single Name Cleared Transactions referencing the relevant 

combination of Reference Entity, Transaction Type and Reference Obligation and the 

Existing Matrix were they to reference the Revised Matrix instead, then the Existing 

Matrix and the Revised Matrix shall be deemed not to be fungible and paragraph (c)

below shall apply.

(b) Revised Matrix Fungible

If LCH SA determines in consultation with the CDSClear Product Committee that the 

Existing Matrix and the Revised Matrix are fungible for the purposes of Single Name 

Cleared Transactions referencing the relevant combination of Reference Entity, 

Transaction Type and Reference Obligation (such date of determination, a Matrix Reversioning Date), then:

(i) LCH SA will promptly notify all Clearing Members of such determination; and

(ii) each Single Name Cleared Transaction referencing the relevant combination of

Reference Entity, Transaction Type and Reference Obligation and the Existing 

Matrix will, as of the close of business on the Matrix Re-versioning Date, be 

deemed to have been amended so as to reference the Revised Matrix, which 

shall become the Relevant Physical Settlement Matrix for the Reference Entity

in respect of such combination of Transaction Type and Reference Obligation. 
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For the avoidance of doubt, following the publication of a Revised Matrix, there may 

be different Matrix Re-versioning Dates in respect of (A) Single Name Cleared 

Transactions referencing different Reference Entities and (B) Single Name Cleared 

Transactions referencing the same Reference Entity but referencing a different 

Transaction Type or Reference Obligation.

(c) Revised Matrix not Fungible

If it is determined that the Revised Matrix and the Existing Matrix are not fungible for 

the purposes of Single Name Cleared Transactions referencing the relevant 

combination of Reference Entity, Transaction Type and Reference Obligation, then 

existing Single Name Cleared Transactions referencing such combination of Reference 

Entity, Transaction Type and Reference Obligation and the Existing Matrix shall 

continue to reference the Existing Matrix.

(d) Original Transactions submitted prior to Matrix Re-versioning Date

Any Original Transaction referencing a combination of Reference Entity, Transaction 

Type and Reference Obligation submitted for clearing after a Matrix Re-versioning 

Date in respect of the relevant combination of Reference Entity, Transaction Type and 

Reference Obligation and which references the Existing Matrix prior to such Matrix 

Re-versioning Date will, following novation, result in an Initial Single Name Cleared 

Transaction referencing the Revised Matrix.

2.6 Terms of STM Cleared Transaction

The following terms of a registered STM Cleared Transaction are designated as the 

“STM Cleared Terms”.

If a Cleared Transaction is designated as an STM Cleared Transaction in accordance 

with Article 3.1.10.7 of the CDS Clearing Rule Book the terms of such Cleared 

Transaction will automatically, and without any further action by either party, include 

the STM Cleared Terms. 

(a) Net present value

(i) LCH SA shall, at least once per Cash Payment Day, determine the net present 

value of this STM Cleared Transaction in such manner and at such times as may 

be provided in Section 2 of the Procedures. 

(ii) Immediately upon LCH SA making such a determination of the net present 

value of this STM Cleared Transaction: 

(A) An amount (determined in accordance with Section 2.14 (NPV Amount) 

of the Procedures) of cash may become due and payable by the Clearing 

Member or LCH SA (as applicable, and as determined in accordance with 

Section 2.14 (NPV Amount) of the Procedures) under these STM Cleared 

Terms; and 
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(B) the net present value of this STM Cleared Transaction shall for all 

purposes be reset to zero. 

(iii) The amount (if any) referred to in (ii)(A) above shall immediately become due 

and payable by the relevant party under the STM Cleared Terms applicable to 

this STM Cleared Transaction and shall be made in such manner and at such 

times as may be provided in Section 2 of the Procedures.

(iv) In any circumstance preventing the NPV Payments or Variation Margin 

Collateral Transfers from being performed in US Dollar, LCH SA shall be entitled 

to convert any amount denominated in US Dollar into Euro in accordance with 

Article 4.2.3.2 of the CDS Clearing Rule Book. 

(b) Price Alignment Amount 

(i) LCH SA shall, at least once per Cash Payment Day, determine the Price 

Alignment Amount in respect of this STM Cleared Transaction in such manner 

and at such times as may be provided in Section 2 of the Procedures. 

(ii) Immediately upon LCH SA making such a determination of the Price Alignment 

Amount in respect of this STM Cleared Transaction, an amount (determined in 

accordance with Section 2.17 (Price Alignment Amount) of the Procedures) of 

cash may become due and payable by the Clearing Member or LCH SA (as 

applicable, and as determined in accordance with Section 2.17 (Price Alignment 

Amount) of the Procedures) under these STM Cleared Terms. 

(iii) The amount (if any) referred to in (ii) above shall immediately become due and 

payable by the relevant party under the STM Cleared Terms applicable to this 

STM Cleared Transaction and shall be made in such manner and at such times 

as may be provided in Section 2 of the Procedures.

3. PAYMENTS AND DELIVERIES

3.1 Obligation to pay and deliver

Each of LCH SA and each Clearing Member will make each payment or delivery specified 

under the terms of each Cleared Transaction to be made by it, subject to the other provisions 

of the CDS Clearing Documentation. 

Payments under any Cleared Transaction will be made on the due date for value on that date 

in the place of the account specified for the relevant party in the CDS Admission Agreement 

(or such other account as may be designated by it from time to time for such purpose in 

accordance with the CDS Admissions Agreement and/or the Procedures, as applicable) and 

otherwise in accordance with the CDS Clearing Documentation, in freely transferable funds 

and in the manner customary for payments in the required currency. 

Deliveries under any Cleared Transaction will be made for receipt on the due date in the 

manner customary for the relevant obligation unless otherwise specified in or pursuant to 

the CDS Clearing Documentation.
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3.2 Payments under Original Transactions

(a) If any Initial Payment Amount or Fixed Amount is due and payable under the terms of 

an Original Transaction on or before the Clearing Day on which the related Cleared 

Transactions are created by novation pursuant to Title III (Clearing Operations) of the 

CDS Clearing Rule Book, such amount shall be payable under and in accordance with 

the terms of such Original Transaction. In such event, no corresponding Initial Payment 

Amount or Fixed Amount shall be payable in respect of such Cleared Transactions. 

(b) If the Initial Payment Date of an Original Transaction is a date falling after the Clearing 

Day on which the Cleared Transactions related to such Original Transaction are 

created by novation pursuant to Title III (Clearing Operations) of the CDS Clearing Rule 

Book then the corresponding Initial Payment Date for the related Cleared Transactions 

shall occur on the Transaction Business Day which is also a Clearing Day immediately 

following the Clearing Day on which such related Cleared Transactions are created.

4. CREDIT EVENTS, SUCCESSION EVENTS AND RENAME EVENTS

4.1 Determination of Credit Events and Succession Events

Notwithstanding any provision of any Cleared Transaction to the contrary:

(a) LCH SA (in its capacity as Calculation Agent with respect to such Cleared Transaction) 

shall not make any determination pursuant to Section 2.10 (Substitute Reference 

Obligation) of the 2014 ISDA Credit Derivatives Definitions or in respect of any matter 

which is or may be subject to resolution under Sections 3.5 (Successor Resolutions) or 

3.6 (Substitute Reference Obligation Resolutions) of the DC Rules; and

(b) neither LCH SA nor any Clearing Member shall be entitled to deliver a Successor 

Notice or a Credit Event Notice (other than Credit Event Notices in relation to an 

M(M)R Restructuring in accordance with the terms of any Restructuring Cleared 

Transaction and, where applicable, the DTCC Rules and Section 7.8 (Failure to notify 

Matched Pairs)). 

4.2 Credit Event Timeline

(a) Publication of Credit Event Timeline

Upon a DC Credit Event Announcement, LCH SA will publish and make available to 

Clearing Members a timeline in respect of the relevant Credit Event and related 

Affected Cleared Transactions, to notify, among other things, the relevant Novation 

Cut-off Date(s), Compression Cut-off Date(s) and First Novation Date(s).

Any such timeline shall (i) be published and made available on the date of such DC 

Credit Event Announcement or, if LCH SA determines that such publication on such 

date is not practicably possible, as soon as practicable thereafter (but in no event later 

than the Transaction Business Day before the earlier of the relevant Novation Cut-off 

Date and the relevant Compression Cut-off Date) and (ii) in all cases be without 
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prejudice to and consistent with the terms of the CDS Clearing Documentation and 

any relevant DC Resolutions. 

(b) Amendment of Credit Event Timeline

Any such timeline may be subject to subsequent amendment by LCH SA, by means of 

a Clearing Notice to Clearing Members, only to reflect subsequent DC Resolutions, 

timing provisions of any relevant Transaction Auction Settlement Terms and/or 

actions of DTCC, or in each case any subsequent amendments thereto. Any such 

amendment shall be made by LCH SA as soon as reasonably practicable following the 

relevant event. 

4.3 Novation and Compression following Credit Events

Any Restructuring Cleared Transaction (or portion thereof) in respect of which a valid Credit 

Event Notice is not delivered in respect of the relevant M(M)R Restructuring during the 

relevant CEN Triggering Period shall become eligible for compression in accordance with 

Chapter 3 (Compression) of Title III (Clearing Operations) of the CDS Clearing Rule Book on 

the Transaction Business Day following the related Exercise Cut-off Date applicable to the 

relevant Buyer.

By way of clarification to Chapter 3 (Compression) of Title III (Clearing Operations) of the CDS 

Clearing Rule Book, LCH SA shall effect compression of relevant Cleared Transactions if and 

to the extent requested by a Clearing Member.

4.4 Re-couponing of Restructuring Cleared Transactions

Following an M(M)R Restructuring, LCH SA may perform re-couponing in accordance with 

Section 5 of the Procedures on any Restructuring Cleared Transaction (or portion thereof) in 

respect of which a valid Credit Event Notice has not been delivered during the relevant CEN 

Triggering Period, provided that:

(a) LCH SA notifies (such notice, the “Initial Re-couponing Notice”) all of the relevant 

Clearing Members of its intention to perform such re-couponing and the intended 

date of such re-couponing (such date, the “Re-Couponing Date”);

(b) the Re-Couponing Date is no earlier than the later of (i) the end of the relevant CEN 

Trigger Period; and (ii) eight Transaction Business Days after the effective date of the 

Initial Re-couponing Notice;

(c) all of the relevant Clearing Members have subsequently consented to the proposed 

re-couponing, subject to confirmation of the terms of such re-couponing, within five 

Transaction Business Days of the effective date of the Initial Re-couponing Notice;

(d) after receiving consent from all relevant Clearing Members in accordance with 

paragraph (c) above, LCH SA notifies (such notice, the “Re-couponing Notice”) the 

relevant Clearing Members, no later than three Transactions Business Days prior to 

the Re-Couponing Date, of the proposed terms of the Resulting Single Name Cleared 
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Transactions determined by LCH SA in accordance with Section 5 of the Procedures; 

and

(e) all of the relevant Clearing Members have subsequently consented to the proposed 

terms of such re-couponing process as set out in the Re-couponing Notice within two 

Transaction Business Days of the effective date of the Re-couponing Notice.

For the avoidance of doubt, if, in respect of a proposed re-couponing process, LCH SA does 

not obtain consent from all of the relevant Clearing Members in accordance with paragraphs 

(c) or (e) above, then LCH SA may elect to propose a re-couponing process again in accordance 

with this Section 4.4 for so long as any relevant Restructuring Cleared Transactions remain 

outstanding.

4.5 Succession Events and Cleared Transactions

If LCH SA determines that any Original Transaction submitted for novation or any Cleared 

Transaction subject to compression would have been subject to a Succession Event but will 

no longer be subject to such Succession Event upon novation or compression (as applicable) 

because of the Trade Date that would be specified with respect to the relevant Cleared 

Transactions, LCH SA may take such action as it deems necessary to ensure that such 

Succession Event is given effect with respect to such Cleared Transactions, including, without 

limitation, specifying an alternate Trade Date for purposes of Section 2.1 (Reference Entity) 

of the 2014 ISDA Credit Derivatives Definitions with respect to each relevant Cleared 

Transaction or, where LCH SA determines that an alternative course of action is not 

practicable, declining to accept such Original Transaction for novation or Cleared Transaction 

for compression (as applicable).

4.6 Succession Event Timeline

(a) Publication of Succession Event Timeline

Following the publication of a Successor Resolution, LCH SA will publish and make 

available to Clearing Members a timeline in respect of the relevant Succession Event 

and related Affected Cleared Transactions, to notify, amongst other things, the 

relevant Novation Cut-off Date(s), Compression Cut-off Date(s) and First Novation 

Date(s). 

Any such timeline shall be published and made available as soon as practicable (but in 

no event later than the Transaction Business Day before the earlier of the relevant 

Novation Cut-off Date and the relevant Compression Cut-off Date) and shall in all cases 

be without prejudice to and consistent with the terms of the CDS Clearing 

Documentation and any relevant DC Resolutions. 

(b) Amendment of Succession Event Timeline

Any such timeline may be subject to subsequent amendment by LCH SA, by means of 

a Clearing Notice to Clearing Members, to reflect subsequent DC Resolutions and any 

relevant actions of DTCC, or in each case any subsequent amendments thereto. Any 
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such amendment shall be made by LCH SA as soon asreasonably practicable following 

the relevant event.

4.7 Rename Events

In respect of Single Name Cleared Transactions, if a Reference Entity changes its name (a 

"Rename Event"), LCH SA will publish and make available to Clearing Members as soon as 

practicable upon becoming aware of such Rename Event a timeline in respect of the relevant 

Rename Event and related Affected Cleared Transactions, to notify, amongst other things, 

the relevant Novation Cut-off Date(s), Compression Cut-off Date(s) and First Novation 

Date(s). 

Any such timeline may be subject to subsequent amendment by LCH SA, by means of a 

Clearing Notice to Clearing Members, to reflect any relevant actions of DTCC. Any such 

amendment shall be made by LCH SA as soon as reasonably practicable following the relevant 

event.

4.8 Updating Eligible Index Versions

(a) Publication of Revised Index

Where the Index Publisher of an Eligible Index Version publishes a revised version of 

such index following:

(i) a DC Credit Event Announcement; 

(ii) a Successor Resolution; 

(iii) the determination of a Substitute Reference Obligation in respect of a NonStandard Relevant Obligation; or

(iv) publication of a revised SRO List,

LCH SA will in consultation with the CDSClear Product Committee determine whether 

such revised index version is fungible with the Eligible Index Version after taking 

account of the relevant Credit Event, Succession Event or, as applicable, Substitute 

Reference Obligation. 

(b) Index Version not Fungible

If LCH SA determines in consultation with the CDSClear Product Committee that such 

revised index version is not fungible with the Eligible Index Version after taking 

account of the relevant Credit Event, Succession Event or, as applicable, Substitute 

Reference Obligation, it shall notify DTCC accordingly so that DTCC does not 

automatically update the trade records for Index Cleared Transactions and Index CCM 

Client Transactions referencing the relevant Eligible Index Version in the TIW.
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(c) Index Fungible

Unless LCH SA has notified DTCC in accordance with paragraph (b) above, following 

confirmation from DTCC that the trade records for Cleared Transactions referencing 

the relevant index have been updated in the TIW (such date a DTCC Re-versioning 

Date) so that such Cleared Transactions reference the revised index version (which 

such revised index version shall become the Eligible Index Version), LCH SA will update 

its corresponding records in the CDS Clearing System overnight following such DTCC 

Re-versioning Date. LCH SA will send the relevant reports referred to in Section 5 of 

the Procedures to the relevant Clearing Members on the Transaction Business Day 

following such DTCC Re-versioning Date which will be updated so as to refer to Cleared 

Transactions referencing the revised index version.

4.9 Reversal of DC Credit Event Announcements and Margining

If a DC Credit Event Announcement is reversed then, subject to Section 10.2(a)(i) of the 2014 

ISDA Credit Derivatives Definitions, LCH SA shall be obliged in accordance with Section 3 of 

the Procedures to calculate and shall be entitled to call for Margin and/or be obliged to return 

Margin with respect to each Clearing Member on the basis that the DC Credit Event 

Announcement that is reversed had not been made.

5. RESTRUCTURING

5.1 Creation and Notification of Restructuring Matched Pairs

Following the occurrence of an M(M)R Restructuring, LCH SA will create (on one or, if the 

Novation Cut-off Date in respect of Index Cleared Transactions is prior to the Novation Cutoff Date in respect of Initial Single Name Cleared Transactions, two or more occasions) 

Restructuring Matched Pairs in accordance with Section 8.1 (Creation of Matched Pairs). Each 

such Restructuring Matched Pair shall be composed of two Restructuring Cleared 

Transactions created at the same time as and as a result of the termination of the relevant 

Single Name Cleared Transactions pursuant to Section 5.2 (Creation of Restructuring Cleared 

Transactions) below. 

LCH SA shall notify the relevant Matched Buyer and Matched Seller comprised within each 

Restructuring Matched Pair of: 

(a) the identity of the other Clearing Member (together with the address, fax number, 

telephone number, email address and other applicable notice details of such other 

Clearing Member) of such Matched Pair; and 

(b) the associated Restructuring Matched Pair Amount, 

as soon as reasonably practicable following the related Compression Cut-off Date, but in any 

event, at or prior to the RMP Notification Deadline. 

LCH SA will additionally provide to DTCC all relevant "Matching Information" (as defined in 

the DTCC Rules) on or prior to the Matching Information Notification Deadline. 
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5.2 Creation of Restructuring Cleared Transactions

Upon the notification to the relevant Clearing Members of Restructuring Matched Pairs, the 

relevant Initial Single Name Cleared Transactions, Restructuring Cleared Transactions 

(created following the occurrence of a previous M(M)R Restructuring), Spin-off Single Name 

Cleared Transactions and Resulting Single Name Cleared Transactions entered into by each 

Clearing Member with LCH SA will be deemed terminated and new Restructuring Cleared 

Transactions of the same CDS Type will be deemed to be entered into between each such 

Clearing Member and LCH SA, with each such Restructuring Cleared Transaction having a 

Floating Rate Payer Calculation Amount corresponding to the Restructuring Matched Pair 

Amount of a Restructuring Matched Pair in which the relevant Clearing Member is comprised 

as a Matched Buyer or a Matched Seller, as applicable.

5.3 Triggering of Restructuring Cleared Transactions

Subject as set out in Section 7 (Delivery of Notices and Fallbacks), and notwithstanding 

anything to the contrary in the terms of any Cleared Transaction, Clearing Members may only 

deliver Credit Event Notices in relation to an M(M)R Restructuring during the CEN Triggering 

Period following notification of Restructuring Matched Pairs by LCH SA and subject always to 

the terms of the relevant Restructuring Cleared Transaction and, where applicable, the DTCC 

Rules.

Any Credit Event Notice in respect of an M(M)R Restructuring delivered in respect of a 

Restructuring Matched Pair for an amount which is greater than the related Floating Rate 

Payer Calculation Amount shall be ineffective as to such excess.

5.4 Notice to Exercise Movement Option

Subject as set out in Section 7 (Delivery of Notices and Fallbacks), Clearing Members may only 

deliver a Notice to Exercise Movement Option during the NEMO Triggering Period, subject 

always to the other terms of the relevant Restructuring Cleared Transaction and, where 

applicable, the DTCC Rules. 

5.5 Reversal of DC Credit Event Announcements

If a DC Credit Event Announcement made in relation to an M(M)R Restructuring is reversed 

then, subject to Section 10.2(a)(i) of the 2014 ISDA Credit Derivatives Definitions:

(a) LCH SA shall have no obligation to create Restructuring Matched Pairs in accordance 

with Section 5.1 (Creation and Notification of Restructuring Matched Pairs), any such 

Restructuring Matched Pairs so created shall be deemed not to have been created 

and any Credit Event Notices in respect of the relevant M(M)R Restructuring delivered 

in connection with such Restructuring Matched Pairs shall be deemed to be 

ineffective; 

(b) LCH SA shall, where applicable, make relevant registrations in the TIW in order to 

reflect such reversal which shall also automatically result in such registrations being 

made in respect of any related CCM Client Transactions; and
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(c) Section 4.9 (Reversal of DC Credit Event Announcements and Margining) shall apply. 

5.6 Reports

Without prejudice to the notification requirements set out elsewhere in the CDS Clearing 

Documentation, LCH SA will communicate to the relevant Clearing Members, on the basis of 

information received from DTCC or, as applicable, from Clearing Members, amongst other 

things:

(a) the aggregate Floating Rate Payer Calculation Amounts of Restructuring Cleared 

Transactions to which they are a party and which are the subject of Credit Event 

Notices; and

(b) the results of the exercise of any Movement Option in relation to Cleared 

Transactions to which they are a party, 

at or around 7.00 p.m. on each day during each CEN Triggering Period and NEMO Triggering 

Period, as applicable, through the reports referred to in Section 5 of the Procedures. 

For the avoidance of doubt, such communication shall not affect the validity or effectiveness 

of any Credit Event Notice or Notice to Exercise Movement Option which shall be subject to 

the terms of the relevant Restructuring Cleared Transaction.

6. PHYSICAL SETTLEMENT

6.1 General Terms relating to Physical Settlement

Where Physical Settlement is applicable as the Fallback Settlement Method pursuant to 

Section 6.1 (Auction Settlement) or 6.15 (Movement Option) of the 2014 ISDA Credit 

Derivatives Definitions, each Cleared Transaction will be subject to settlement in accordance 

with its terms and this Section 6 (Physical Settlement).

LCH SA has implemented a process, as set-out in this Section 6 (Physical Settlement), pursuant 

to which Clearing Members will manage the physical delivery process bilaterally in respect of 

any Cleared Transactions for which Physical Settlement is applicable. 

Notwithstanding such process, LCH SA shall remain the legal counterparty for any such 

Cleared Transactions for which Physical Settlement is applicable and shall continue to be 

liable with respect to its obligations relating to such Physical Settlement, subject to its terms 

and this Section 6 (Physical Settlement).

6.2 Creation and Notification of Settlement Matched Pairs

LCH SA will create Settlement Matched Pairs in accordance with Section 8.1 (Creation of 

Matched Pairs) and notify Matched Buyer and Matched Seller comprised within each 

Settlement Matched Pair of: 

(a) the identity of the other Clearing Member (together with the address, fax number, 

telephone number, email address and other applicable notice details of each such 

other Clearing Member); and 
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(b) the associated Settlement Matched Pair Delivery Amount, 

at or prior to the SMP Notification Deadline. 

Notwithstanding the above, the Settlement Matched Pair for a Restructuring Cleared 

Transaction shall be the Restructuring Matched Pair previously created by LCH SA in 

accordance with Section 5.1 (Creation and Notification of Restructuring Matched Pairs) in 

respect of such Restructuring Cleared Transaction.

6.3 Physically Settled Cleared Transactions

Following the actual or deemed creation of such Settlement Matched Pairs, the relevant 

Cleared Transactions in respect of which the Fallback Settlement Method applies will be 

construed as if they had been terminated and new Cleared Transactions of the same CDS 

Type will be deemed to have been entered into between each such Clearing Member and 

LCH SA (each such deemed Cleared Transaction being a "Physically Settled Cleared 

Transaction"). 

Each such Physically Settled Cleared Transaction shall have a Floating Rate Payer Calculation 

Amount corresponding to the Settlement Matched Pair Delivery Amount of a Settlement 

Matched Pair in which the relevant Clearing Member is comprised as a Matched Buyer or a 

Matched Seller, as applicable. 

6.4 Matched Seller Calculation Agent

Notwithstanding any provision to the contrary in a Physically Settled Cleared Transaction (but 

subject as set out in Section 6.10 (Failure to pay Physical Settlement Amount), the "Calculation 

Agent" for the purposes of Article VIII (Terms relating to Physical Settlement) and Section 9.6 

(Partial Cash Settlement Terms) of the 2014 ISDA Credit Derivatives Definitions shall be the 

relevant Matched Seller.

6.5 Notices of Physical Settlement

(a) No Notices of Physical Settlement until Notification of Settlement Matched Pairs 

Subject as set out at Section 7.8 (Failure to notify Matched Pairs) and notwithstanding 

anything to the contrary in the terms of any Cleared Transaction, Clearing Members 

may not deliver any Notices of Physical Settlement or Asset Package Notices in respect 

of any Affected Cleared Transactions until they have been notified of their Settlement 

Matched Pairs. 

(b) Notice of Physical Settlement and Asset Package Notice to contain Matched Buyer 

Account Information

Each Notice of Physical Settlement and Asset Package Notice delivered by Matched 

Buyer shall contain, in addition to the information required under the terms of the 

relevant Physically Settled Cleared Transaction, Matched Buyer's account information. 
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(c) Details of Asset Package

If Asset Package Delivery is applicable in respect of a Physically Settled Cleared 

Transaction, the Matched Buyer shall on the NOPS Effective Date, or as soon as 

reasonably practicable thereafter, deliver an Asset Package Notice to the Matched 

Seller containing a detailed description of the Asset Package that the Matched Buyer 

intends to deliver to Matched Seller in lieu of the Prior Deliverable Obligation that is 

specified in the Notice of Physical Settlement or NOPS Amendment Notice, as 

applicable.

(d) LCH SA not Liable 

LCH SA shall have no liability with respect to any loss, cost, damage or expense 

suffered or incurred by a Matched Seller as a result of any error or inaccuracy in any 

Notice of Physical Settlement or any NOPS Amendment Notice or Asset Package 

Notice sent by a Matched Buyer and shall have no duty to verify any such notice or the 

contents thereof.

6.6 Delivery of Non-DVP Obligations

The following shall apply in relation to any Settlement Matched Pair where: (1) the relevant 

Matched Buyer specifies a Non-DVP Obligation in a Notice of Physical Settlement or a NOPS 

Amendment Notice, or (2) if Asset Package Delivery is applicable in respect of a Physically 

Settled Cleared Transaction:

(a) The relevant Matched Buyer shall notify LCH SA that it is ready to Deliver the relevant 

Non-DVP Obligation (or if Asset Package Delivery is applicable, the Assets that are to 

be delivered) at or prior to 5.30 p.m. on the Transaction Business Day prior to the 

date on which Delivery is scheduled to occur. In such notice, the relevant Matched 

Buyer shall also specify the amount of any expenses payable to it under Section 

11.2(c)(vi) of the 2014 ISDA Credit Derivatives Definitions.

(b) LCH SA shall notify the relevant Matched Seller at or prior to 6.30 p.m. on the 

Transaction Business Day prior to the date on which Delivery is scheduled to occur 

that it is obligated to pay LCH SA the amount of the relevant Physical Settlement 

Amount corresponding to the Outstanding Amount of such Non-DVP Obligation or, 

if Asset Package Delivery is applicable in respect of such Settlement Matched Pair, the 

amount of such Physical Settlement Amount which corresponds to the Outstanding 

Amount of the Deliverable Obligation(s) in lieu of which the Asset Package is being 

Delivered less an amount equal to the Asset Package Cash Settlement Amount 

determined in respect of such Asset Package (the "Non-DVP Asset Package 

Settlement Amount") and in each case any amounts in respect of expenses notified 

by the relevant Matched Buyer before 9.00 a.m. on the following Transaction 

Business Day.

(c) The relevant Matched Seller shall pay to LCH SA the amount(s) so requested on or 

prior to 9.00 a.m. on the Transaction Business Day immediately following the date on 
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which the relevant Matched Buyer notified LCH SA of its readiness to Deliver provided 

that the request for payment has been made in a timely manner as set out above.

(d) LCH SA shall notify the relevant Matched Buyer that it has received payment at or 

prior to 5.30 p.m. on the Transaction Business Day in which LCH SA receives payment, 

provided that payment is received by LCH SA at or prior to 9.00 a.m. on such 

Transaction Business Day as set out above.

(e) The relevant Matched Buyer shall Deliver the relevant non-DVP Obligations (or if 

Asset Package Delivery is applicable, the Assets that are to be delivered) to the 

relevant Matched Seller, provided that, if Asset Package Delivery is applicable the 

relevant Matched Buyer's obligation to deliver any Assets in the form of cash in the 

Settlement Currency forming part of the relevant Asset Package will be automatically 

satisfied and discharged.

(f) The relevant Matched Seller shall notify LCH SA that Delivery has occurred by 5.30 

p.m. on the Transaction Business Day on which Matched Seller receives Delivery of 

the relevant Non-DVP Obligations (or if Asset Package Delivery is applicable, the

relevant Assets that are to be delivered pursuant to this Section 6.6 (Delivery of NonDVP Obligations). Notices received after 3.30 p.m. will be deemed received on the 

next following Transaction Business Day, unless LCH SA agrees otherwise.

(g) If and to the extent that LCH SA has received payment from the relevant Matched 

Seller of the Physical Settlement Amount or the Non-DVP Asset Package Settlement 

Amount, as applicable in full on a timely basis as set out above, LCH SA shall pay the 

Physical Settlement Amount or the Non-DVP Asset Package Settlement Amount, as 

applicable and any expenses due to the relevant Matched Buyer under Section 

11.2(c)(vi) of the 2014 ISDA Credit Derivatives Definitions on or prior to 9.00 a.m. on 

the Transaction Business Day following the Transaction Business Day on which LCH 

SA receives the notice referred to in sub-paragraph (e) above from the relevant 

Matched Seller.

(h) If and to the extent that Delivery of the relevant Non-DVP Obligations has not been 

effected by the relevant Matched Buyer in accordance with terms of the relevant 

Physically Settled Cleared Transaction as of the expiry of the third Transaction 

Business Day following delivery of the relevant Matched Buyer's notice referred to 

above, the relevant Matched Seller may request LCH SA to repay the Physical 

Settlement Amount or the Non-DVP Asset Package Settlement Amount, as applicable, 

not earlier than the first Transaction Business Day following the date on which such 

request is effectively delivered to LCH SA.

6.7 Alternative Delivery Procedure

A Matched Buyer and Matched Seller comprising a Settlement Matched Pair may elect to 

exercise their rights against and perform obligations to LCH SA in relation to the Settlement 

Matched Pair Delivery Amount (or any portion thereof) directly as between themselves. To 

exercise such option, the relevant Matched Buyer and Matched Seller must each notify LCH 

SA accordingly (in the form set out in Appendix V hereto) specifying the relevant Matched 
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Contracts in respect of the related relevant Settlement Matched Pair Delivery Amounts and 

obtain the consent of LCH SA, which consent will not be unreasonably withheld or delayed 

by more than one Transaction Business Day following receipt of such notification by Matched 

Buyer and Matched Seller.

With effect from the time that LCH SA confirms its consent, the Settlement Matched Pair 

Delivery Amount will be reduced by the amount specified in the joint notice of the relevant 

Matched Buyer and Matched Seller, and the relevant Matched Buyer and Matched Seller shall 

each perform their obligations to each other and shall each acquire enforcement rights in 

respect of the other party's obligations to it pursuant to the Contracts (Rights of Third Parties) 

Act 1999 in respect of any such reduction as agreed between them.

6.8 Buy-in of Bonds – Matched Seller has entered into CCM Client Transaction

The following provisions shall solely be applicable to a Matched Seller that is a CCM in 

respect of the Matched Contracts of the Settlement Matched Pair if such Matched Seller 

notifies Matched Buyer and LCH SA that it has a CCM Client Transaction which corresponds 

to the Matched Seller Contract:

(a) Buy-in of Bonds – Settlement Matched Pair

Section 9.7 (Buy-in of Bonds Not Delivered) of the 2014 ISDA Credit Derivatives 

Definitions shall not apply in respect of the Matched Contracts of the Settlement 

Matched Pair.

(b) Deemed Buy-in of Bonds resulting from CCM Client Transaction of Matched Seller that 

is a CCM

Provided that Physical Settlement has not already occurred in respect of the Matched 

Contracts of a Settlement Matched Pair, if: 

(i) the Matched Seller that is a CCM receives a Buy-in Notice from its CCM Client 

in respect of the CCM Client Transaction between such Matched Seller and its 

CCM Client which is validly delivered pursuant to the terms of such CCM Client 

Transaction (including the Mandatory Provisions), then such Matched Seller 

shall notify Matched Buyer and LCH.SA of its receipt of such Buy-in Notice and 

of the content thereof and Matched Buyer's right to Deliver the Relevant Bonds 

specified in the relevant Buy-in Notice shall be suspended until the fourth 

Business Day (inclusive) following the Buy-In Date specified in the relevant BuyIn Notice (the "Deemed Buy-in Period"); and

(ii) such Matched Seller notifies Matched Buyer and LCH SA that it has been 

notified by its CCM Client pursuant to Section 9.7 (Buy-in of Bonds Not 

Delivered) of the 2014 ISDA Credit Derivatives Definitions that a Buy-in Price 

has been determined in respect of Relevant Bonds for the purposes of the CCM 

Client Transaction between such Matched Seller and its CCM Client, then on 

the third Business Day following receipt by Matched Seller of such notice from 
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its CCM Client (which such date Matched Seller shall specify) (the "Buy-in 

Effective Date"): 

(A) Matched Buyer will be deemed to have Delivered to such Matched 

Seller an Outstanding Principal Balance of the Deliverable Obligations 

specified in the Notice of Physical Settlement or any NOPS Amendment 

Notice, as applicable, for which a Buy-in Price was determined by the 

CCM Client; and

(B) the Physical Settlement Amount to be paid by such Matched Seller to 

Matched Buyer in respect of the Matched Contracts of the Settlement 

Matched Pair shall be reduced (but not below zero) by an amount equal 

to the amount by which the Physical Settlement Amount to be paid to 

such Matched Seller by its CCM Client in respect of the CCM Client 

Transaction has been reduced pursuant to Section 9.7 (Buy-in of Bonds 

Not Delivered) of the 2014 ISDA Credit Derivatives Definitions.

Such Matched Seller shall notify Matched Buyer and LCH SA of the Outstanding 

Principal Balance of the Deliverable Obligations and the Physical Settlement 

Amount reduction determined in respect of its CCM Client Transaction for the 

purposes of (A) and (B) above.

6.9 Alternative Procedures relating to Loans – Buyer Right to Deliver 

The following provision shall solely be applicable in respect of the Matched Contracts of the 

Settlement Matched Pair if a Matched Buyer that is a CCM notifies Matched Seller and LCH 

SA that it has a CCM Client Transaction which corresponds to the Matched Buyer Contract:

If a Matched Buyer that is a CCM notifies Matched Seller and LCH SA that it has received a 

Bond or Loan from its CCM Client in respect of its CCM Client Transaction pursuant to Section 

9.8(i) (Alternative Procedures Relating to Loans Not Delivered) of the 2014 ISDA Credit 

Derivatives Definitions, then such Bonds or Loans shall be deemed specified in a NOPS 

Amendment Notice for the purposes of the Matched Contracts of the Settlement Matched 

Pair and such NOPS Amendment Notice will be effective notwithstanding the fact that it is 

deemed specified after the Physical Settlement Date.

6.10 Failure to pay Physical Settlement Amount

If, in relation to any Settlement Matched Pair, a Matched Seller fails to pay all or part of the 

Physical Settlement Amount (the Failed Amount) to the related Matched Buyer, as designee 

for LCH SA, when due:

(a) the relevant Matched Buyer may and the relevant Matched Seller shall, as soon as 

practicable, give notice in writing to LCH SA, giving all material details of the 

Settlement Matched Pair involved, the relevant failure to pay and the Failed Amount;

(b) such failure to pay shall not constitute or be deemed to constitute a breach of 

contract, event of default or failure to pay by LCH SA under the CDS Clearing 

Documentation or otherwise (but such failure to pay may, for the avoidance of doubt, 
LCH SA © 2021 162 Published on 30 July 2021[●]

constitute a breach of the CDS Clearing Documentation and/or a Payment Failure for 

the purposes of Article 4.3.1.1 of the CDS Clearing Rule Book by or with respect to the 

relevant Clearing Member);

(c) if the relevant Matched Buyer elects to notify LCH SA of such failure to pay as 

contemplated above, such Matched Buyer may give any such notice as soon as 

reasonably practicable after the occurrence of such failure to pay by the relevant 

Matched Seller;

(d) upon notice being given to LCH SA by the relevant Matched Buyer, "Cash Settlement" 

between the relevant Matched Buyer and LCH SA and the relevant Matched Seller 

and LCH SA pursuant to the Partial Cash Settlement Terms (set out in Section 9.6 

(Partial Cash Settlement Terms) of the 2014 ISDA Credit Derivatives Definitions, as 

amended by this CDS Clearing Supplement) shall be deemed to apply to the relevant 

Physically Settled Cleared Transactions of the Settlement Matched Pair with respect 

to the Deliverable Obligations corresponding to the Failed Amount as though: 

(i) the Deliverable Obligations not Delivered were Undeliverable Obligations; 

(ii) the Latest Permissible Physical Settlement Date were the date on which the 

relevant Matched Buyer gave the relevant notice to LCH SA; 

(iii) Indicative Quotations were not applicable; 

(iv) the relevant Matched Buyer were the Calculation Agent in respect of the 

Physically Settled Cleared Transaction of the Settlement Matched Pair to which 

it is a direct party; and

(v) the Cash Settlement Amount determined in respect of the Physically Settled 

Cleared Transaction between Matched Buyer and LCH SA is also the Cash 

Settlement Amount in respect of the corresponding Physically Settled Cleared 

Transaction of the Settlement Matched Pair; and

(e) LCH SA and the relevant Matched Buyer will settle the relevant Physically Settled 

Cleared Transaction accordingly.

6.11 Partial Cash Settlement due to Impossibility or Illegality

Section 9.1 (Partial Cash Settlement Due to Impossibility or Illegality) of the 2014 ISDA Credit 

Derivatives Definitions shall apply to a Physically Settled Transaction in the circumstances 

contemplated therein, provided that Matched Buyer or Matched Seller notifies the other 

Clearing Member comprised in the relevant Settlement Matched Pair and LCH SA accordingly. 

In such case, the related Physically Settled Cleared Transaction entered into between LCH SA 

and the other Clearing Member comprised in the relevant Settlement Matched Pair shall 

likewise be subject to "Cash Settlement" pursuant to the Partial Cash Settlement Terms and 

Section 6.14 (Consequences of Cash Settlement). 
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6.12 Fallback to Cash Settlement in respect of Non-Deliverable Obligations

(a) If Matched Buyer is not permitted to Deliver one or more Deliverable Obligations 

(such Deliverable Obligations, the Non-Deliverable Obligations) specified in the 

relevant Notice of Physical Settlement or NOPS Amendment Notice to Matched Seller 

as designee for LCH SA in the relevant Matched Pair because:

(i) the amount of such Deliverable Obligation to be Delivered is less than the 

relevant minimum denomination of such Deliverable Obligation; or

(ii) such Matched Seller is not a permitted transferee under such Deliverable 

Obligation (and, in the case of this sub-section (ii), such circumstance would 

not constitute an illegality or impossibility outside the control of a relevant 

party for the purposes of Section 9.1 (Partial Cash Settlement Due to 

Impossibility or Illegality) of the 2014 ISDA Credit Derivatives Definitions),

then it shall notify the relevant Matched Seller and LCH SA (in the form set out in 

Appendix VI hereto) accordingly describing in reasonable detail the relevant 

circumstances. 

With effect from such notification, such occurrence shall be treated, in relation to each 

relevant Physically Settled Cleared Transaction, as an illegality or impossibility outside 

the control of a relevant party for the purpose of Section 9.1 (Partial Cash Settlement 

Due to Impossibility or Illegality) of the 2014 ISDA Credit Derivatives Definitions. 

(b) Upon notice being given to LCH SA by Matched Buyer under sub-paragraph (a) of this 

Section 6.12 (Fallback to Cash Settlement in respect of Non-Deliverable Obligations), 

"Cash Settlement" pursuant to the Partial Cash Settlement Terms shall be deemed to 

apply to the Matched Contracts in respect of the relevant Settlement Matched Pair 

with respect to the Non-Deliverable Obligations as though the Non-Deliverable 

Obligations were Undeliverable Obligations and the provisions set out in Section 6.14

(Consequences of Cash Settlement) of this CDS Clearing Supplement shall apply. 

6.13 Cash Settlement Resulting from CCM Client Transaction of a Matched Buyer that is a CCM

The following provision shall solely be applicable in respect of the Matched Contracts of the 

Settlement Matched Pair if a Matched Buyer that is a CCM notifies Matched Seller and LCH 

SA that it has a CCM Client Transaction which corresponds to the Matched Buyer Contract:

If a Matched Buyer that is a CCM notifies Matched Seller and LCH SA that the corresponding 

CCM Client Transaction between such Matched Buyer and its CCM Client is to be settled (in 

whole or in part) by Cash Settlement pursuant to Section 9.1 (Partial Cash Settlement Due to 

Impossibility or Illegality) of the 2014 ISDA Credit Derivatives Definitions or Mandatory 

Provision 7.2 (Fallback to Cash Settlement in respect of Non-Deliverable Obligations), then: 

(a) "Cash Settlement" shall be deemed to apply (in whole or in part, as applicable) to the 

Matched Contracts of the Settlement Matched Pair pursuant to the Partial Cash 

Settlement Terms and Section 6.14 (Consequences of Cash Settlement); 
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(b) the 'Undeliverable Obligations' for the purposes of the Partial Cash Settlement Terms 

shall be the Undeliverable Obligations or Non-Deliverable Obligations in respect of 

the corresponding CCM Client Transaction; and

(c) the Cash Settlement Amount and the Cash Settlement Date in respect of the Matched 

Contracts of the Settlement Matched Pair shall be the same as the Cash Settlement 

Amount and the Cash Settlement Date determined in respect of the corresponding 

CCM Client Transaction. 

6.14 Consequences of Cash Settlement

If the circumstances set out in either Section 6.11 (Partial Cash Settlement Due to 

Impossibility or Illegality) or paragraph (a) of Section 6.12 (Fallback to Cash Settlement in 

respect of Non-Deliverable Obligations) or Section 6.13 (Cash Settlement Resulting from CCM 

Client Transaction of a Matched Buyer that is a CCM) apply, then:

(a) the Latest Permissible Physical Settlement Date in respect of the relevant Physically 

Settled Cleared Transaction will be deemed to be the first date on which the relevant 

Matched Buyer or Matched Seller effectively gave the relevant notice to both LCH SA 

and the other Clearing Member as referred to in Section 6.11 (Partial Cash Settlement 

Due to Impossibility or Illegality) or paragraph (a) of Section 6.12 (Fallback to Cash 

Settlement in respect of Non-Deliverable Obligations) or Section 6.13 (Cash 

Settlement Resulting from CCM Client Transaction of a Matched Buyer that is a CCM) 

above, as applicable, (and for these purposes, Section 9.5 (Latest Permissible Physical 

Settlement Date) of the 2014 ISDA Credit Derivatives Definitions shall not apply);

(b) the relevant Matched Buyer will be deemed to be the Calculation Agent;

(c) LCH SA and the relevant Matched Buyer will settle the applicable Matched Buyer 

Contract, and LCH SA and the relevant Matched Seller will settle the applicable 

Matched Seller Contract, accordingly; and

(d) where sub-paragraph (a)(ii) of Section 6.12 (Fallback to Cash Settlement in respect of 

Non-Deliverable Obligations) applies, Indicative Quotations shall not be applicable.

6.15 Amendments to Section 9.6(k) of 2014 ISDA Credit Derivatives Definitions

Solely for the purposes of Section 6.11 (Partial Cash Settlement due to Impossibility or 

Illegality), Section 6.12 (Fallback to Cash Settlement in respect of Non-Deliverable 

Obligations), Section 6.13 (Cash Settlement Resulting from CCM Client Transaction of a 

Matched Buyer that is a CCM) and Section 6.14 (Consequences of Cash Settlement) of this CDS 

Clearing Supplement, Section 9.6(k) of the 2014 ISDA Credit Derivatives Definitions is 

amended by inserting the following at the beginning thereof:

"(A) For the purposes hereof, in addition to the requirements of Section 7.10, each firm 

Quotation shall:

(1) be for a transaction with Matched Buyer (or its designee) (the Relevant Buyer) 

pursuant to which the Relevant Buyer agrees to Deliver the Deliverable 
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Obligations to the Dealer submitting the firm quotation (the Quoting Dealer), 

which transaction shall be governed by documentation that is consistent with 

market practice applicable to the sale and purchase of Deliverable Obligations 

on the Valuation Date (which may be determined by the relevant Credit 

Derivatives Determinations Committee), including, without limitation, a 

representation that the Quoting Dealer has completed all "know your 

customer" or similar requirements under all applicable laws, regulations and 

internal compliance procedures relating to a transaction with the Relevant 

Buyer and in respect of the Reference Entity;

(2) be capable of acceptance by the Relevant Buyer (for such purposes, each firm 

Quotation must, inter alia, be obtained from a Dealer with whom the Relevant 

Buyer, in its sole and absolute discretion, determines that it is able, in 

accordance with all its internal compliance and policy requirements, to transact 

and to Deliver the Deliverable Obligations) and be open for acceptance by the 

relevant party for at least 30 minutes; and

(3) be obtained on the basis that if the Relevant Buyer agrees to Deliver the 

Deliverable Obligations to such Quoting Dealer on the terms set forth herein, 

such Quoting Dealer agrees to pay the settlement amount (calculated and 

payable for this purpose in accordance with the relevant market standard 

documentation and based on the price so quoted) that would be payable to 

the Relevant Buyer for such Deliverable Obligations.

(B) Otherwise,".

6.16 Subsequent Determination by the Credit Derivatives Determinations Committee with 

respect to an Auction

If the Fallback Settlement Method applies in respect of a Cleared Transaction and a 

subsequent resolution of the Credit Derivatives Determinations Committee determines that 

Transaction Auction Settlement Terms will be published, LCH SA shall have no obligation to 

create Settlement Matched Pairs in accordance with Section 6.2 (Creation and Notification of 

Settlement Matched Pairs). 

Unless settlement has occurred with respect to any Settlement Matched Pairs prior to such 

determination, any such Settlement Matched Pairs so created shall be deemed not to have 

been created and any notices delivered in connection with such Settlement Matched Pairs 

shall be deemed to be ineffective. 

LCH SA shall effect any relevant registrations in the TIW in order to reflect the application of 

Auction Settlement as the Settlement Method in respect of the relevant Cleared 

Transactions.

6.17 Physical Settlement Costs

If the Fallback Settlement Method applies in respect of a Cleared Transaction and any 

amounts are payable in relation to any costs or expenses of Physical Settlement (including 
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any costs or expenses relating to the delivery of any Assets forming part of an Asset Package), 

then:

(a) where such amount would otherwise be payable by LCH SA to Matched Buyer or 

Matched Seller (the Recipient), such amount shall be payable to the Recipient by the 

other party to the Matched Contract who is not the Recipient, as designee to pay such 

amount on behalf of LCH SA; and

(b) where such amount would otherwise be payable to LCH SA by Matched Buyer or 

Matched Seller (the Payer), such amount shall be payable by the Payer to the other 

party to the Matched Contract who is not the Payer, as designee to receive such 

amount on behalf of LCH SA. 

Any Matched Seller or Matched Buyer who is required to make any payment as designee on 

behalf of LCH SA pursuant to this Section 6.17 shall not be entitled to any reimbursement 

from LCH SA in respect of such amount.

Any Matched Seller or Matched Buyer who receives any payment pursuant to this Section 

6.17 shall not be obliged to remit to LCH SA any such amount so received (without prejudice 

to any rights of LCH SA where there is a failure to Deliver).

LCH SA shall not be liable to a Matched Buyer or a Matched Seller for any of the costs and 

expenses of Physical Settlement of any Cleared Transaction.

6.18 Representations and Agreements relating to Physical Settlement

(a) Claims by Matched Seller against LCH SA in respect of Obligations Delivered by 

Physical Settlement

If a Matched Seller pursues a claim against LCH SA under Sections 11.2(a), (b), (c)(i) or 

(c)(iv) of the 2014 ISDA Credit Derivatives Definitions in respect of any obligations 

Delivered by way of Physical Settlement of any Matched Seller Contract, then:

(i) notwithstanding any provision of the 2014 ISDA Credit Derivatives Definitions 

to the contrary, LCH SA shall only be liable to make payments to that Matched 

Seller in respect of that claim to the extent of amounts recovered, including, 

without limitation, any amounts recovered by way of set-off or netting, by LCH 

SA from or on behalf of the related Matched Buyer in respect of any 

corresponding claims under or in connection with the Matched Buyer Contract 

(including, without limitation, following the declaration of an Event of Default 

in respect of such Matched Buyer) and after deducting any costs and expenses 

reasonably incurred by LCH SA in pursuing such corresponding claims for 

recovery under or in connection with the Matched Buyer Contract;

(ii) LCH SA will use reasonable efforts to pursue any claim it may have against the 

related Matched Buyer but, notwithstanding Section 6.18(a)(i) above, LCH SA 

will, in the pursuit of such claims, act as though its liability to Matched Seller 

under the Matched Seller Contract was not limited or restricted in any way; and
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(iii) references to indemnity provisions set out in Section 11.2(a), 11.2(b) and 

11.2(c)(iv) of the 2014 ISDA Credit Derivatives Definitions shall, in connection 

with a Matched Buyer Contract, be interpreted without regard to the 

limitations to Matched Seller's recourse to LCH SA under the corresponding 

Matched Seller Contract imposed by the provisions of this Section 6.18(a) and 

such limitations shall not restrict a Matched Seller from making a claim or 

raising a Dispute.

(b) Right of Matched Seller to enforce against Matched Buyer

Without prejudice to paragraph (a) above, a Matched Seller shall be entitled to enforce 

Sections 11.2(a), (b), (c)(i) and (c)(iv) of the 2014 ISDA Credit Derivatives Definitions 

against the related Matched Buyer in respect of any obligations Delivered by way of 

Physical Settlement of any Physically Settled Cleared Transaction under the Contracts 

(Rights of Third Parties) Act 1999 as though Matched Seller were party to the relevant 

Matched Buyer Contract in place of LCH SA.

(c) Satisfaction of Claim by Matched Buyer discharges Liabilities owed to and by LCH 

SA

For the avoidance of doubt, if a Matched Buyer satisfies a claim made by a Matched 

Seller directly against the relevant Matched Buyer under Sections 11.2(a), (b), (c)(i) or 

(c)(iv) of the 2014 ISDA Credit Derivatives Definitions pursuant to the rights granted to 

such Matched Seller under paragraph (b) above, such satisfaction shall also constitute 

complete satisfaction and discharge of the corresponding liability of such Matched 

Buyer to LCH SA and the corresponding liability of LCH SA to such Matched Seller in 

respect of such claim.

(d) Effect of Illegality or Tax or other Expense resulting from Designation through 

Creation of Matched Pairs

The last sentence of Section 11.2(c)(iv) of the 2014 ISDA Credit Derivatives Definitions 

shall not operate so as to prevent LCH SA from creating any Matched Pair in 

accordance with this CDS Clearing Supplement, and LCH SA shall have no obligation to 

grant any indemnity with respect to any Tax, loss or cost to any Matched Buyer or 

Matched Seller thereunder. 

If the circumstances contemplated at Section 11.2(c)(iv)(A) or (B) of the 2014 ISDA 

Credit Derivatives Definitions apply in respect of any Physically Settled Cleared 

Transaction and any related Settlement Matched Pair (in the case of (B), as notified by 

the Clearing Member which is the non-designating party for such purpose to the other 

Clearing Member comprised in the relevant Settlement Matched Pair prior to the first 

Delivery Date), then an impossibility shall be deemed to have occurred with respect 

to Physical Settlement of the relevant Physically Settled Cleared Transactions, and 

Section 9.1 (Partial Cash Settlement Due to Impossibility or Illegality) of the 2014 ISDA 

Credit Derivatives Definitions (as amended by this CDS Clearing Supplement) shall 

apply.
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6.19 Miscellaneous Provisions relating to Physical Settlement

(a) Margin

For the avoidance of doubt, LCH SA will continue to call all Margin and such Margin

will remain due in relation to any Cleared Transaction to which Physical Settlement 

applies until: 

(i) LCH SA has received a Notice of Physical Settlement from each Clearing 

Member; 

(ii) LCH SA has received a No Physical Settlement Confirmation from each Clearing 

Member; or 

(iii) in each case, any related dispute is referred to and finally resolved by 

arbitration or by litigation, as applicable, in accordance with the CDS Dispute 

Resolution Protocol, subject to the provisions of Sections 8 and 9 of the 

Procedures.

(b) Notification of Completion of Physical Settlement

Upon completion of Physical Settlement by the relevant Matched Pair of a Physically 

Settled Cleared Transaction, Matched Buyer and Matched Seller shall inform LCH SA 

as soon as reasonably practicable and in any event before the date falling two 

Transaction Business Days following such completion (the Physical Settlement 

Confirmation Deadline) by notice (a Physical Settlement Confirmation) in the form 

set out at Appendix VII hereto. 

(c) Notification that Physical Settlement will not occur

If no Notice of Physical Settlement has been delivered within the relevant time period 

permitted for such delivery in accordance with the terms of the relevant Physically 

Settled Cleared Transaction and, accordingly, Physical Settlement will not, under the 

terms of the relevant Physically Settled Cleared Transaction, occur, Matched Buyer 

and Matched Seller shall inform LCH SA as soon as reasonably practicable thereafter 

and in any event before the date falling two Transaction Business Days following the 

relevant date after which delivery of a Notice of Physical Settlement is no longer 

permitted in accordance with the terms of the relevant Physically Settled Cleared 

Transaction (the No Physical Settlement Confirmation Deadline) by notice (a No

Physical Settlement Confirmation) in the form set out at Appendix VIII hereto. 

(d) Dispute regarding Physical Settlement

If LCH SA receives a Physical Settlement Confirmation or No Physical Settlement 

Confirmation from one relevant Matched Buyer or Matched Seller only at or prior to 

the relevant Physical Settlement Confirmation Deadline or No Physical Settlement 

Confirmation Deadline, as the case may be, there shall be deemed to be a Dispute with 

respect to the Physically Settled Cleared Transactions between LCH SA and each 

relevant Clearing Member.
LCH SA © 2021 169 Published on 30 July 2021[●]

(e) Asset Package Delivery

If Asset Package Delivery is applicable in respect of a Physically Settled Cleared 

Transaction and an Asset to be delivered is a Non-Transferable Instrument or NonFinancial Instrument, then the Asset shall be deemed to be an amount of cash equal 

to the value determined by the CDSClear Product Committee (which, notwithstanding 

anything to the contrary, shall be the "Calculation Agent" for the purposes of Section 

8.15 (Asset Market Value) of the 2014 ISDA Credit Derivatives Definitions). 

7. DELIVERY OF NOTICES AND FALLBACKS

7.1 General Rules relating to Notices

(a) Methods of Delivery and deemed Time of Delivery

Subject to Section 7.2 (Oral Notices) and without prejudice to Section 1.38 

(Requirements Regarding Notices) of the 2014 ISDA Credit Derivatives Definitions and 

the remaining provisions of the 2014 ISDA Credit Derivatives Definitions (including, for 

the avoidance of doubt, in relation to notices permitted to be given orally), any notice 

or other communication in respect of any Cleared Transaction may be given in any 

manner described below and will be deemed effective as indicated:

(i) if delivered in person or by courier, on the date and at the time it is delivered;

(ii) if sent by facsimile transmission, on the date it is received by a responsible 

employee of the recipient in legible form (it being agreed that the burden of 

proving receipt will be on the sender and will not be met by a transmission 

report generated by the sender’s facsimile machine);

(iii) if sent by certified or registered mail (airmail, if overseas) or the equivalent 

(return receipt requested), on the date it is delivered or its delivery is 

attempted; or

(iv) if sent by electronic messaging system (including e-mail or any other electronic 

access solution established by LCH SA for such purpose), on the date it is 

received,

unless the date of that delivery (or attempted delivery) or that receipt, as applicable, 

is not a Transaction Business Day or that communication is delivered (or attempted) 

or received, as applicable, pursuant to the above after 6.00 p.m. in the location of the 

recipient on a Transaction Business Day, in which case that communication will be 

deemed given and effective on the first following day that is a Transaction Business 

Day.

(b) Notices from or to LCH SA

Any such notice or communication given by LCH SA to a Clearing Member or vice versa 

shall (except where delivered via a relevant DTCC Notice Facility) be given to the 
LCH SA © 2021 170 Published on 30 July 2021[●]

address or number previously specified in or previously notified for the relevant 

purpose in accordance with the CDS Admissions Agreement or the Procedures.

(c) Manual Notices between Clearing Members

Notices given by a Clearing Member to another Clearing Member comprised in a 

relevant Matched Pair and which are not delivered via a relevant DTCC Notice Facility 

shall be given to the address or number notified by LCH SA to the deliveror pursuant 

to Sections 5.1 (Creation and Notification of Restructuring Matched Pairs) or 6.2

(Creation and Notification of Settlement Matched Pairs). 

Such notices shall only be deemed to be delivered effectively by LCH SA through the 

relevant Clearing Member as its designee as against the recipient where the address 

or number so notified by LCH SA corresponds in all material respects to the address or 

number, as applicable, specified by such recipient in or pursuant to the CDS 

Admissions Agreement. 

(d) No Obligation on LCH SA to verify Signatories

LCH SA shall have no obligation to verify the authority of any signatory of any notice 

delivered by any Clearing Member directly pursuant to this Section 7 (Delivery of 

Notices and Fallbacks).

7.2 Oral Notices 

Notwithstanding the provisions of the 2014 ISDA Credit Derivatives Definitions, where, by 

way of exception as contemplated in this Section 7, Credit Event Notices and Notices to 

Exercise Movement Option are to be delivered directly to LCH SA (and not via a relevant DTCC 

Notice Facility), such notices may not be delivered by telephone.

7.3 Credit Event Notices and NEMOs 

(a) Credit Event Notices and NEMOs to be given via DTCC

Credit Event Notices and Notices to Exercise Movement Option shall be delivered by 

way of the relevant DTCC Notice Facility, save if and as expressly stated to the contrary 

in this Section 7 or expressly agreed by LCH SA. The deemed time of delivery of any 

such notices shall be as set out in the DTCC Rules from time to time.

(b) Credit Event Notices and NEMOs delivered in respect of CCM Client Transaction

If a Matched Buyer or a Matched Seller that is a CCM receives a valid Credit Event 

Notice or Notice to Exercise Movement Option from its CCM Client in respect of a CCM 

Client Transaction by way of the relevant DTCC Notice Facility, such notice shall be 

deemed also to be a Credit Event Notice or Notice to Exercise Movement Option (as 

applicable) for the purposes of the corresponding Matched Contracts of the 

Restructuring Matched Pair. 
LCH SA © 2021 171 Published on 30 July 2021[●]

7.4 Notification of DTCC Failure and Resolution

(a) LCH SA to notify Clearing Members of DTCC Failure Event

If DTCC notifies LCH SA or LCH SA otherwise becomes aware that the relevant DTCC 

Notice Facility is or will be unavailable to process all or substantially all Credit Event 

Notices or Notices to Exercise Movement Option, as applicable, with respect to an 

M(M)R Restructuring in a timely manner (a DTCC Failure Event), then LCH SA will, as 

soon as reasonably practicable and in any event within one hour of such notification 

or of LCH SA becoming aware of such non-availability, as applicable, notify all relevant 

Clearing Members of such occurrence, including the time at which such failure 

occurred (or, if LCH SA is not notified of such time by or on behalf of DTCC, the time at 

which LCH SA received the relevant notification from or on behalf of DTCC or becomes 

aware of the relevant non-availability) (the DTCC Failure Event Time). LCH SA shall also 

publish such information on its Website as soon as reasonably practicable after 

becoming aware of a DTCC Failure Event.

(b) LCH SA to notify Clearing Members of Resolution of DTCC Failure Event

If, subsequent to a DTCC Failure Event, DTCC (or a third party designated under the 

DTCC Rules from time to time) notifies LCH SA that a DTCC Failure Event previously 

notified to Clearing Members is no longer in effect, LCH SA will as soon as reasonably 

practicable notify all relevant Clearing Members accordingly, including the time (the 

DTCC Resolution Time) (which must be no earlier than 30 minutes following the time 

of such notification) at which such DTCC Failure Event is deemed to have been 

resolved and following which the relevant DTCC Notice Facility is operative for the 

purposes of delivery of relevant notices relating to Restructuring Cleared Transactions 

(including transactions in respect of which notices may have been delivered directly 

pursuant to Section 7.5 (Consequences of DTCC failure). LCH SA shall also publish such 

information on its Website as soon as reasonably practicable after notifying Clearing 

Members that the DTCC Failure Event is no longer in effect and of the DTCC Resolution 

Time.

(c) Notices given prior to DTCC Resolution Time to be confirmed to DTCC

LCH SA and, to the extent so requested by LCH SA, each Clearing Member shall, as 

soon as reasonably practicable and to the extent permitted by DTCC, provide or 

confirm to DTCC details of any relevant notices (in the case of a Clearing Member, 

being any relevant notices delivered directly by such Clearing Member) given in 

respect of Cleared Transactions prior to the DTCC Resolution Time, so as to permit 

delivery of subsequent notices in respect of such Cleared Transactions via the relevant 

DTCC Notice Facility.
LCH SA © 2021 172 Published on 30 July 2021[●]

7.5 Consequences of DTCC Failure

From (and including) the DTCC Failure Event Time to (but excluding) the DTCC Resolution 

Time:

(a) Section 7.3(a) (Credit Event Notices and NEMOs to be given via DTCC) shall not apply 

and accordingly Credit Event Notices and Notices to Exercise Movement Option shall 

be delivered directly (and not via the relevant DTCC Notice Facility);

(b) any notice delivered via the relevant DTCC Notice Facility prior to the DTCC Failure 

Event Time will be valid and will not be affected by such DTCC Failure Event; and

(c) any notice delivered or purported to be delivered via the relevant DTCC Notice Facility 

at or following the DTCC Failure Event Time but prior to the DTCC Resolution Time 

will not be valid and effective.

Section 7.3(a) (Credit Event Notices and NEMOs to be given via DTCC) shall apply with effect 

from the DTCC Resolution Time and, accordingly, any notice thereafter delivered or 

purported to be delivered directly (and not via the relevant DTCC Notice Facility) will not be 

valid and effective. 

7.6 Clearing Member Communications Failure Event 

(a) Right to deliver Notices manually following Clearing Member Communications 

Failure Event

If a Clearing Member is affected by a significant communications or information 

technology failure resulting in it being impossible or impractical for such Clearing 

Member to deliver any Credit Event Notice in relation to an M(M)R Restructuring or 

any Notice to Exercise Movement Option via a relevant DTCC Notice Facility (a Clearing 

Member Communications Failure Event) it may, notwithstanding Section 7.3(a)

(Credit Event Notices and NEMOs to be given via DTCC) deliver Credit Event Notices 

and Notices to Exercise Movement Option directly (and not via the relevant DTCC 

Notice Facility). 

(b) Clearing Member to notify LCH SA of Occurrence of Clearing Member 

Communications Failure Event

Following the occurrence of a Clearing Member Communications Failure Event, the 

affected Clearing Member shall, within one hour of delivering any Credit Event Notice 

or Notice to Exercise Movement Option directly, deliver to LCH SA a notice (in the form 

set out at Appendix IX hereto) signed by a senior officer (such as a managing director 

or equivalent) of such Clearing Member certifying that it is affected by a Clearing 

Member Communications Failure Event (or, if such Clearing Member is unable to 

deliver such notice in writing, orally by telephone). 

LCH SA shall notify all Clearing Members accordingly as soon as reasonably practicable 

and in any event within one hour of receipt of any such notification.
LCH SA © 2021 173 Published on 30 July 2021[●]

(c) Notices to Clearing Member affected by Clearing Member Communications Failure 

Event

For the avoidance of doubt, Section 7.3(a) (Credit Event Notices and NEMOs to be 

given via DTCC) shall continue to apply in respect of notices given to the affected 

Clearing Member by Clearing Members comprised in any Matched Pair in respect of 

which the affected Clearing Member is a Matched Buyer or Matched Seller.

(d) Notification of Resolution of Clearing Member Communications Failure Event

As soon as reasonably practicable upon a Clearing Member ceasing to be subject to a 

Clearing Member Communications Failure Event, it shall notify LCH SA accordingly (in 

the form set out at Appendix X hereto) and thereupon Section 7.3(a) (Credit Event 

Notices and NEMOs to be given via DTCC) shall apply and, accordingly, any Credit Event 

Notice or Notice to Exercise Movement Option thereafter delivered or purported to 

be delivered directly (and not via the relevant DTCC Notice Facility) will not be valid 

and effective.

(e) Clearing Member Duty to Mitigate

A Clearing Member which is subject to a Clearing Member Communications Failure 

Event shall use reasonable endeavours to mitigate the operational impact on other 

Clearing Members and LCH SA of any Clearing Member Communications Failure Event, 

to cure such Clearing Member Communications Failure Event as soon as possible and 

to ensure that the circumstances giving rise to the relevant Clearing Member 

Communications Failure Event do not recur. 

(f) Breach by Clearing Member does not Invalidate Valid Notices

Without prejudice to any other rights or remedy of LCH SA, any breach by a Clearing 

Member of the provisions of this Section 7.6 shall not cause any Credit Event Notice 

or Notice to Exercise Movement Option delivered otherwise than in accordance with 

the relevant Restructuring Cleared Transaction, which would otherwise be valid and 

effective, to be invalid or ineffective.

7.7 Clearing Member Acknowledgements

(a) Duty to deliver Clearing Member Acknowledgements

Each Clearing Member shall notify LCH SA or deliver a copy to LCH SA of any notice 

delivered or received by such Clearing Member to or from another Clearing Member 

comprised in a Matched Pair, including, without limitation, any Credit Event Notice or 

Notice to Exercise Movement Option which was delivered or received directly (and 

not via a DTCC Notice Facility) pursuant to Sections 7.5 (Consequences of DTCC Failure) 

or 7.6 (Clearing Member Communications Failure Event), and which such Clearing 

Member asserts or acknowledges was effective for the purposes of this CDS Clearing 

Supplement and the relevant Cleared Transactions (such notification, or delivery of 
LCH SA © 2021 174 Published on 30 July 2021[●]

such copy, in respect of any relevant notice, a Clearing Member Acknowledgement) 

by no later than 6.00 p.m. on: 

(i) in the case of a Notice of Physical Settlement or NOPS Amendment Notice or 

Asset Package Notice, the date falling two Transaction Business Days following 

the date on which such notice was sent; or 

(ii) in the case of any other notice, on the last date on which such notice could 

validly be sent, 

(in each case, the Notice Acknowledgement Deadline).

(b) Clearing Member Acknowledgement received from both Clearing Members

Where LCH SA receives a Clearing Member Acknowledgement in respect of any notice 

from both relevant Clearing Members comprised in a Matched Pair at or prior to the 

Notice Acknowledgement Deadline, LCH SA shall perform its obligations in respect of 

the relevant Cleared Transactions in accordance with and subject to the remaining 

provisions of the CDS Clearing Documentation.

(c) Clearing Member Acknowledgement received from one Clearing Member

Where LCH SA receives a Clearing Member Acknowledgement in respect of any notice 

from one relevant Clearing Member only at or prior to the Notice Acknowledgement 

Deadline, the provisions of Section 7.11 (Disputes as to Notices) shall apply and LCH 

SA and each relevant Clearing Member shall perform their obligations in respect of 

the relevant Cleared Transactions in accordance with and subject to the remaining 

provisions of the CDS Clearing Documentation and the terms of any final resolution of 

the relevant dispute, as agreed between the relevant parties or as determined by 

arbitration or by litigation, as applicable, in accordance with the CDS Dispute 

Resolution Protocol, subject to the provisions of Sections 8 and 9 of the Procedures. 

In such case, LCH SA shall notify the Clearing Member from which it has not received 

a Clearing Member Acknowledgement of the asserted delivery or, as applicable, 

receipt of the relevant notice (in the case of a Credit Event Notice or Notice to Exercise 

Movement Option, through the reports referred to at Section 5.6 (Reports)). 

(d) No Clearing Member Acknowledgement received

Where LCH SA does not receive Clearing Member Acknowledgement or confirmation 

of valid delivery in respect of any notice from either Clearing Member in the relevant 

Matched Pair on or prior to the relevant Notice Acknowledgement Deadline, the rights 

and obligations of LCH SA as against each relevant Clearing Member, and vice versa, 

shall be construed as if no such notice had been given. 
LCH SA © 2021 175 Published on 30 July 2021[●]

(e) Consequences of no Clearing Member Acknowledgement being received

Where sub-section (d) above is applicable, the following provisions shall apply:

(i) Notices other than Notices of Physical Settlement, NOPS Amendment Notices 

and Asset Package Notices

Save in the case of a Notice of Physical Settlement, a NOPS Amendment Notice 

or an Asset Package Notice, an amount shall be payable between the Clearing 

Members equal to the difference between the value of the Matched Buyer 

Contract had Clearing Member Acknowledgement been given to LCH SA on a 

timely basis and the value of such contract in the absence of such 

acknowledgement; such difference in value shall be determined as of the 

earlier of the day on which notice is given by any relevant Clearing Member 

that such amount is due and payable and, in the case of a Credit Event Notice 

or Notice to Exercise Movement Option, the eighth Transaction Business Day 

following the Auction Settlement Date, no Auction Announcement Date or 

Auction Cancellation Date, as applicable or otherwise the eighth Transaction 

Business Day following the last day on which such notice would validly have 

been delivered, by reference to the relevant Auction Settlement Amount or 

end of day contributed prices, in each case if available. 

(ii) Notices of Physical Settlement, NOPS Amendment Notices and Asset Package 

Notices

Where the relevant notice is a Notice of Physical Settlement, a NOPS 

Amendment Notice or an Asset Package Notice, the relevant Clearing Members 

shall acquire rights as against the other as though party to a bilateral credit 

default swap transaction on the terms of the related Matched Buyer Contract 

(including, without limitation, as to the occurrence of an Event Determination 

Date) and the Notice of Physical Settlement, NOPS Amendment Notice or Asset 

Package Notice, as applicable shall be deemed to have been given in respect of 

such transaction. Any resulting payment shall be due and payable two 

Transaction Business Days following the giving of a notice that such amount is 

due and payable.

In each case, the relevant Clearing Members shall have enforcement rights as against 

each other pursuant to the Contracts (Rights of Third Parties) Act 1994 in respect of 

any resulting payments and deliveries; LCH SA shall have no liability in respect thereof.

7.8 Failure to notify Matched Pairs

Notwithstanding Section 5.3 (Triggering of Restructuring Cleared Transactions) and 6.5

(Notices of Physical Settlement), if LCH SA does not notify the relevant Clearing Members of 

Restructuring Matched Pairs created pursuant to Section 5.1 (Creation and Notification of 

Restructuring Matched Pairs) on or prior to the RMP Notification Deadline or Settlement 
LCH SA © 2021 176 Published on 30 July 2021[●]

Matched Pairs and related information specified in Section 6.2 (Creation and Notification of 

Settlement Matched Pairs) by the SMP Notification Deadline, as applicable: 

(a) the relevant Clearing Members may deliver Credit Event Notices, Notices to Exercise 

Movement Option, Notices of Physical Settlement or NOPS Amendment Notices to 

LCH SA, and vice versa; 

(b) the relevant Cleared Transactions shall be subject to Physical Settlement in 

accordance with their terms; and 

(c) the provisions of Sections 2.4 (Amendments to 2014 ISDA Credit Derivatives 

Definitions), 6 (Physical Settlement) and 8 (Matched Pair Designations and Notices) 

shall not apply and the terms of this CDS Clearing Supplement shall be construed 

accordingly. 

For such purpose, Section 7.3 (Credit Event Notices and NEMOs) shall not apply in respect of 

notices given by the affected Clearing Members and accordingly Credit Event Notices and 

Notices to Exercise Movement Option shall be delivered directly (and not via the relevant 

DTCC Notice Facility).

7.9 Failure to notify Matching Information

If LCH SA notifies relevant Clearing Members of Restructuring Matched Pairs created 

pursuant to Section 5.1 (Creation and Notification of Restructuring Matched Pairs) on or prior 

to the RMP Notification Deadline, but does not notify DTCC of relevant Matching Information 

on or prior to the RMP Notification Deadline, then Section 7.3(a) (Credit Event Notices and 

NEMOs to be given via DTCC) shall not apply in respect of notices to be delivered by affected 

Clearing Members and accordingly Credit Event Notices and Notices to Exercise Movement 

Option shall be delivered directly as between Clearing Members (as designees of LCH SA) (and 

not via the relevant DTCC Notice Facility).

7.10 Uncertain Delivery

(a) Manual Notice permitted if Delivery of Notice in DTCC uncertain

Notwithstanding Section 7.3(a) (Credit Event Notices and NEMOs to be given via 

DTCC), where such notices are permitted to be delivered by means other than the 

relevant DTCC Notice Facility pursuant to this Section 7, and a Clearing Member is 

uncertain as to whether or not a Credit Event Notice or Notice to Exercise Movement 

Option (as applicable) it (or, in the case of a CCM, its CCM Client) attempted to deliver 

via a DTCC Notice Facility has: 

(i) actually been delivered; or 

(ii) was delivered prior to the DTCC Failure Time, 

that Clearing Member shall be entitled to deliver such a notice directly to any Clearing 

Member comprised in a relevant Matched Pair (as designee of LCH SA) specifying that 
LCH SA © 2021 177 Published on 30 July 2021[●]

such notice is only to be effective to the extent that the other purported notice is not 

effective. 

(b) Details to be provided of Uncertain Notice

If a Clearing Member delivers a manual notice pursuant to sub-section (a) (Manual 

Notice permitted if Delivery of Notice in DTCC uncertain) above, such Clearing Member 

shall be required to provide (together with such notice) sufficient details of the notice 

attempted to be given by way of the relevant DTCC Notice Facility so as to allow the 

other Clearing Member and LCH SA to identify the communication concerned. 

(c) DTCC Notice delivered successfully 

If the first Credit Event Notice or Notice to Exercise Movement Option (as applicable) 

to which the manual notice delivered pursuant to sub-section (a) (Manual Notice 

permitted if Delivery of Notice in DTCC uncertain) above relates was actually delivered 

successfully, any subsequent Credit Event Notice or Notice to Exercise Movement 

Option delivered shall be deemed not to have been delivered.

7.11 Disputes as to Notices

If any Clearing Member comprised in a Matched Pair where one such party is acting as 

designee of LCH SA disputes the effective delivery in accordance with the terms of the 

relevant Cleared Transactions of any notice delivered directly (and not via a relevant DTCC 

Notice Facility) in accordance with this Section 7 (and for such purposes, a dispute between 

the relevant Clearing Member and LCH SA shall be deemed to have arisen if LCH SA receives 

a Clearing Member Acknowledgement from one relevant Clearing Member only in respect of 

any such notice as contemplated at Section 7.7(c) (Clearing Member Acknowledgement 

received from one Clearing Member)):

(a) LCH SA shall be entitled in accordance with the Procedures to calculate and call for 

Margin with respect to each such Clearing Member on the basis of the maximum 

requirement for such Clearing Member that could result from any foreseeable 

outcome of such dispute;

(b) following final resolution of such dispute by arbitration or by litigation, as applicable, 

in accordance with the CDS Dispute Resolution Protocol, subject to the provisions of 

Sections 8 and 9 of the Procedures, the Clearing Members comprised in the relevant 

Matched Pair shall take such actions with respect to the Cleared Transactions the 

subject of such dispute as LCH SA determines appropriate to give effect to any 

relevant binding resolution; and

(c) without prejudice to its obligations upon final resolution of the dispute, pending final 

resolution of any such dispute, LCH SA shall not be obliged to take any step pursuant 

to the terms of the relevant Cleared Transactions which would be required to have 

been taken by it had the relevant notice been validly delivered.

Each relevant Clearing Member must promptly notify LCH SA of any such disputes (in the 

form set out at Appendix XI hereto).
LCH SA © 2021 178 Published on 30 July 2021[●]

8. MATCHED PAIR DESIGNATIONS AND NOTICES

8.1 Creation of Matched Pairs

LCH SA will create Matched Pairs where required to do so pursuant to Section 5.1 (Creation 

and Notification of Restructuring Matched Pairs) or 6.2 (Creation and Notification of 

Settlement Matched Pairs) using a matching procedure that matches CDS Sellers with CDS 

Buyers pursuant to an algorithm incorporating the following principles:

(a) the procedure seeks to create Matched Pairs between the same Clearing Member to 

the extent it is possible to do so before creating Matched Pairs between different 

Clearing Members and, for this purpose, in the context of CCMs, the procedure will 

create Matched Pairs separately for CCMs and their CCM Clients (individually where

the CCM Client is allocated to a single CCM Client Margin Account or together where

a set of CCM Clients is allocated to a single CCM Client Margin Account) and Clearing 

Member will be construed accordingly;

(b) the procedure seeks to minimise the number of Matched Pairs (and accordingly, 

largest positions will be matched first);

(c) each Matched Pair will, to the extent possible, have an aggregate Restructuring 

Matched Pair Amount or, as applicable, Settlement Matched Pair Delivery Amount, 

which meets the criteria as set out in a Clearing Notice; and

(d) LCH SA will allocate a Restructuring Matched Pair Amount or, as applicable, 

Settlement Matched Pair Delivery Amount to each Matched Pair such that:

(i) the sum of all Restructuring Matched Pair Amounts or, as applicable, 

Settlement Matched Pair Delivery Amounts, of each CDS Buyer is equal to 

the aggregate Floating Rate Payer Calculation Amounts in respect of all (A) 

Initial Single Name Cleared Transactions, Restructuring Cleared Transactions 

(created following the occurrence of a previous M(M)R Restructuring), Spinoff Single Name Cleared Transactions and Resulting Single Name Cleared 

Transactions or (B) Cleared Transactions in respect of which the Fallback 

Settlement Method applies to the CDS Type for such Cleared Transaction, as 

applicable, to which such CDS Buyer is a party; and 

(ii) the sum of all Restructuring Matched Pair Amounts or, as applicable, 

Settlement Matched Pair Delivery Amounts, of each CDS Seller is equal to 

the aggregate Floating Rate Payer Calculation Amounts in respect of (A) 

Initial Single Name Cleared Transactions, Restructuring Cleared Transactions 

(created following the occurrence of a previous M(M)R Restructuring), Spinoff Single Name Cleared Transactions and Resulting Single Name Cleared 

Transactions or (B) Cleared Transactions in respect of which the Fallback 

Settlement Method applies to the CDS Type for such Cleared Transaction, as 

applicable, to which such CDS Seller is a party.

Notwithstanding the above, if the Fallback Settlement Method applies in relation to a Cleared 

Transaction and an M(M)R Restructuring, the Restructuring Matched Pairs previously created 
LCH SA © 2021 179 Published on 30 July 2021[●]

pursuant to Section 5.1 (Creation of Restructuring Matched Pairs) and this Section 8.1 shall 

be deemed to be Settlement Matched Pairs created in accordance with Section 6.2 (Creation 

and Notification of Settlement Matched Pairs) and LCH SA shall have no obligation to create 

Settlement Matched Pairs in respect of such Cleared Transaction.

8.2 Registration of new Cleared Transactions and Removal of original Cleared Transactions

To the extent that any Cleared Transaction created pursuant to Section 5.2 (Creation of 

Restructuring Cleared Transactions) or Section 6.3 (Physically Settled Cleared Transactions) is 

not automatically registered in accordance with the DTCC Rules, LCH SA shall register such 

new Cleared Transaction in the TIW in accordance with the DTCC Rules prior to 6.00 p.m. on 

the date on which the RMP Notification Deadline or SMP Notification Deadline (as applicable) 

falls. In respect of CCMs and CCM Clients only, such registration by LCH SA shall also result in 

the automatic registration of any amendments made to the corresponding CCM Client 

Transactions. 

In addition, LCH SA will, on behalf of the relevant Clearing Member, send an “Exit” message 

to the TIW in accordance with the DTCC Rules to terminate and remove the corresponding 

original Cleared Transaction(s) from the TIW prior to 6.00 p.m. on the date on which the RMP 

Notification Deadline or SMP Notification Deadline (as applicable) falls.

8.3 Matched Buyer Contracts

In respect of each Matched Buyer Contract which is the subject of a Matched Pair, LCH SA, 

pursuant to Section 11.2(c)(iv) of the 2014 ISDA Credit Derivatives Definitions (amended as 

set out at Section 2.4 (Amendments to 2014 ISDA Credit Derivatives Definitions)), as 

designator, shall be deemed to have designated Matched Seller in such Matched Pair as its 

designee:

(a) to receive on its behalf from, and to deliver on its behalf to, Matched Buyer of the 

Matched Pair any applicable notices or certifications in accordance with the terms of 

the applicable Cleared Transaction (other than notices required to be delivered via a 

DTCC Notice Facility);

(b) other than in respect of the Physical Settlement Amount relating to the settlement of 

Non-DVP Obligations as referred to in Section 6.6 (Delivery of Non-DVP Obligations), 

to pay on behalf of LCH SA any applicable Physical Settlement Amount in accordance 

with the terms of the applicable Physically Settled Cleared Transaction, and to pay to, 

and to receive from, Matched Buyer of the Matched Pair, in each case, on behalf of 

LCH SA, any other amounts due and payable (including costs and expenses of 

settlement due under the applicable Matched Buyer Contract); and

(c) to take Delivery, on behalf of LCH SA, of Deliverable Obligations from Matched Buyer 

of the Settlement Matched Pair.

The relevant Matched Seller shall be deemed to have accepted such designation upon 

notification of the relevant Matched Pair created and notified in accordance with the 

provisions of this CDS Clearing Supplement.
LCH SA © 2021 180 Published on 30 July 2021[●]

8.4 Matched Seller Contracts

In respect of each Matched Seller Contract which is the subject of a Matched Pair, LCH SA, 

pursuant to Section 11.2(c)(iv) of the 2014 ISDA Credit Derivatives Definitions (as amended 

pursuant to Section 2.4 (Amendments to 2014 ISDA Credit Derivatives Definitions) above), as 

designator, shall be deemed to have designated Matched Buyer in such Matched Pair as its 

designee:

(a) to receive on its behalf from, and to deliver on its behalf to, Matched Seller of the 

Matched Pair any applicable notices or certifications in accordance with the terms of 

the applicable Cleared Transaction (other than notices required to be delivered via a 

DTCC Notice Facility);

(b) other than in respect of any Physical Settlement Amount relating to the settlement 

of Non-DVP Obligations as referred to in Section 6.6 (Delivery of Non-DVP 

Obligations), to receive on behalf of LCH SA the applicable Physical Settlement 

Amount in accordance with the terms of any applicable Physically Settled Cleared 

Transaction, and to pay to, and to receive from, Matched Seller of the Matched Pair, 

in each case, on behalf of LCH SA, any other amounts due and payable (including costs 

and expenses of settlement due under the Matched Seller Contract); and

(c) to Deliver, on behalf of LCH SA, the relevant Deliverable Obligations to Matched Seller 

of the Settlement Matched Pair.

The relevant Matched Buyer shall be deemed to have accepted such designation upon 

notification of the relevant Matched Pair created and notified in accordance with the 

provisions of this CDS Clearing Supplement.

8.5 Exercise of Rights

In relation to each Matched Pair:

(a) the exercise of any rights by Matched Buyer against LCH SA under a Matched Buyer 

Contract (other than the right to give any notice via DTCC Notice Facility) shall be 

deemed to constitute the exercise of equal and simultaneous rights by LCH SA against 

Matched Seller under the Matched Seller Contract of the relevant Matched Pair; and

(b) the exercise of any rights by Matched Seller against LCH SA under a Matched Seller 

Contract (other than a right to give notice under a DTCC Notice Facility) shall be 

deemed to constitute the exercise of equal and simultaneous rights by LCH SA against 

Matched Buyer under the Matched Buyer Contract of the relevant Matched Pair.
LCH SA © 2021 181 Published on 30 July 2021[●]

8.6 Clearing Member matched with Itself

(a) Notices

In the event that: 

(i) Matched Buyer and Matched Seller of a Matched Pair pursuant to this Section 

8 (Matched Pair Designations and Notices) is the same Clearing Member; and

(ii) notwithstanding Section 7.3(a) (Credit Event Notices and NEMOs to be given via 

DTCC), a notice or certification is permitted to be delivered in respect of one of 

the Cleared Transactions forming part of such Matched Pair by means other 

than the relevant DTCC Notice Facility pursuant to Section 7 (Delivery of Notices 

and Fallbacks),

such notice shall be deemed to be given upon such Clearing Member sending a 

Clearing Member Acknowledgement to LCH SA pursuant to Section 7.7(a) (Duty to 

deliver Clearing Member Acknowledgements) above in respect of such notice and 

Section 7.7(b) (Clearing Member Acknowledgement received from both Clearing 

Members) shall apply.

(b) Payments and Deliveries

In the event that: 

(i) Matched Buyer and Matched Seller of a Matched Pair pursuant to this Section 

8 (Matched Pair Designations and Notices) is the same Clearing Member; and

(ii) such Clearing Member is required to make a payment or delivery pursuant to 

the terms of one of the Cleared Transactions forming part of such Matched Pair 

as designate of LCH SA,

such payment or delivery shall be deemed to have been made upon such Clearing 

Member giving notice to LCH SA in accordance with Section 7.1 (General Rules relating 

to Notices) that such payment or delivery should be deemed to have been made for 

the purposes of such Cleared Transaction.

8.7 Notices

In relation to each Matched Pair:

(a) where Matched Buyer validly delivers or serves any notice to Matched Seller as 

designee of LCH SA in accordance with the terms of a relevant Matched Buyer 

Contract, such notice shall additionally be effective as a notice given by such Matched 

Buyer as designee of LCH SA to Matched Seller for the purposes of the relevant 

Matched Seller Contract; and

(b) where Matched Seller validly delivers or serves any notice to Matched Buyer as 

designee of LCH SA in accordance with the terms of a relevant Matched Seller 

Contract, such notice shall additionally be effective as a notice given by such Matched 
LCH SA © 2021 182 Published on 30 July 2021[●]

Seller as designee of LCH SA to Matched Buyer for the purposes of the relevant 

Matched Buyer Contract.

9. SELF-REFERENCING TRANSACTIONS

9.1 Occurrence of Clearing Member Self Referencing Transaction

(a) Duty to notify

In respect of a Single Name Cleared Transaction that is registered in the House 

Account Structure of a Clearing Member, the relevant Clearing Member shall, unless 

prohibited from so doing by applicable law or its internal policies, notify LCH SA as 

soon as reasonably practicable if:

(i) such Clearing Member is or consolidates or amalgamates with, or merges into, 

or transfers all or substantially all of its assets to, the Reference Entity in 

relation to such Single Name Cleared Transaction, or enters into any agreement 

in respect of any of the foregoing;

(ii) such Clearing Member and the Reference Entity in relation to such Single Name 

Cleared Transaction are or become Affiliates; or

(iii) in respect of a Restructuring Cleared Transaction, such Clearing Member is or 

becomes the Reference Entity in relation to such Restructuring Cleared 

Transaction as a result of the occurrence of the relevant M(M)R Restructuring.

(b) Auction of Affected Transactions

Following receipt of any such notification or occurrence of a Clearing Member Self 

Referencing Transaction due to a registration of Transfer Positions under Clause 6 of 

the CDS Default Management Process or a transfer of Client Cleared Transactions to 

the House Trade Account under TITLE V, Chapter 4 or TITLE VI, Chapter 4 of the CDS 

Clearing Rule Book, LCH SA will, unless otherwise agreed in consultation with the CDS 

Default Management Group and the affected Clearing Member, and with the 

assistance of the CDS Default Management Group, conduct an auction process to 

liquidate the relevant Single Name Cleared Transaction and enter into an equivalent 

Single Name Cleared Transaction with a Clearing Member other than the affected 

Clearing Member. 

(c) Alternative Action

If LCH SA, after consultation with the CDS Default Management Group and the 

affected Clearing Member, believes that the circumstances are such that an auction 

may be inappropriate, LCH SA may take such other action in consultation with the Risk 

Committee as it considers reasonably necessary to achieve its primary aim in these 

circumstances of addressing the risks resulting from a Clearing Member being party 

to a Clearing Member Self Referencing Transaction, while endeavouring, as far as is 

reasonably practicable in the circumstances without prejudicing the achievement of 
LCH SA © 2021 183 Published on 30 July 2021[●]

the primary aim, to avoid materially and adversely affecting the relevant Clearing 

Member.

(d) Compression of Affected Transactions prior to Auction

Prior to determining the Single Name Cleared Transactions to be subject to any 

auction pursuant to paragraph (b) above, where the affected Clearing Member acts 

as CDS Buyer and CDS Seller in respect of fungible Single Name Cleared Transactions, 

LCH SA shall, in consultation with the CDS Default Management Committee as to the 

transaction sizes of resulting Single Name Cleared Transactions to be auctioned, 

compress such Single Name Cleared Transactions up to the extent that, following such 

compression, Single Name Cleared Transactions representing in aggregate the Open 

Position of the affected Clearing Member in respect of such fungible Single Name 

Cleared Transactions are recognised. 

For these purposes, LCH SA will provide the affected Clearing Member with a report 

detailing the Single Name Cleared Transactions to be subject to such compression. 

The affected Clearing Member will be deemed to have submitted a request to LCH SA 

prior to 5.00 p.m. on the day on which LCH SA carries out the compression for ad hoc 

compression of such Single Name Cleared Transactions in accordance with Section 5 

of the Procedures and such compression shall be carried out in accordance with 

Section 5 of the Procedures on the basis of such deemed request for ad hoc 

compression.

(e) Auction Terms

LCH SA shall determine the timing and other particular characteristics of each such 

auction in consultation with the CDS Default Management Committee, including 

determining the size of the bid/offer spread and/or of the Single Name Cleared 

Transactions to be auctioned, whether one or more such auctions are to be held and 

the timing and structure of such auctions (including the frequency at which firm bid 

and firm offer quotations will be requested and the transaction size (that is, the 

Floating Rate Payer Calculation Amount)). 

Clearing Members (excluding the affected Clearing Member) may be requested, and 

will not be required, to submit actionable quotations in such an auction.

(f) Creation of New Transactions and Termination of Existing Transactions

LCH SA will enter into Single Name Cleared Transactions with Clearing Members, other 

than the affected Clearing Member, in the amount and at the prices determined 

pursuant to such auction. 

At the time of entering into such Single Name Cleared Transactions, the corresponding 

Single Name Cleared Transactions of the affected Clearing Member shall be 

terminated by reference to the prices at which LCH SA enters into such new Single 

Name Cleared Transactions. 
LCH SA © 2021 184 Published on 30 July 2021[●]

The affected Clearing Member, LCH SA and the other Clearing Members, as applicable, 

shall submit such information as is required in accordance with the DTCC Rules so as 

to reflect the terms of any reduction to, termination of or entry into of any Single 

Name Cleared Transaction as a result of any such auction(s). 

(g) Costs of LCH SA

The affected Clearing Member will bear the cost of the associated bid/offer spread 

and any reasonable out-of-pocket costs and expenses of LCH SA in connection with 

such auction(s) and its entering into such new Single Name Cleared Transactions. 

(h) LCH SA to determine Amounts Owed and Payable

Amounts owed by the affected Clearing Member to, or receivable by it from, LCH SA 

in connection with any such auction shall be determined by LCH SA. 

In addition, any amounts payable (and the dates of settlement with respect thereto) 

relating to any Single Name Cleared Transactions created, reduced or terminated 

pursuant to any such auction shall be determined by LCH SA.

9.2 Occurrence of Client Self Referencing Transactions

(a) Notification

In respect of a Single Name Cleared Transaction registered in the Client Account 

Structure of a Clearing Member, the relevant Clearing Member, as applicable, shall, 

unless prohibited from so doing by applicable law or its internal policies, notify LCH 

SA as soon as reasonably practicable if it receives a notice from the Client that:

(i) the Client is or has consolidated or amalgamated with, or merged into, or has 

transferred all or substantially all of its assets to, the Reference Entity in 

relation to such Single Name Cleared Transaction or entered into any 

agreement in respect of any of the foregoing;

(ii) the Client and the Reference Entity in relation to such Single Name Cleared 

Transaction are or have become Affiliates; or

(iii) in respect of a Restructuring Cleared Transaction, the Client is or has become 

the Reference Entity in relation to such Restructuring Cleared Transaction as a 

result of the occurrence of the relevant M(M)R Restructuring.

(b) Auction Process

Following the giving of any such notification:

(i) LCH SA will, unless otherwise agreed in consultation with the CDS Default 

Management Group and the relevant Clearing Member, conduct an auction 

process in consultation with the CDS Default Management Group and the 

relevant Clearing Member, to liquidate the relevant Single Name Cleared 
LCH SA © 2021 185 Published on 30 July 2021[●]

Transaction and enter into an equivalent Single Name Cleared Transaction with 

another Clearing Member; and

(ii) the provisions of Section 9.1. (Occurrence of Clearing Member Self Referencing 

Transaction) will apply mutatis mutandis, provided that:

(A) Section 9.1(a) (Duty to Notify) and 9.1(b) (Auction of Affected 

Transactions) shall not apply;

(B) Section 9.1(d) (Compression of Affected Transactions prior to Auction) is 

amended by deleting the words "to paragraph (b) above" and replacing 

them with the words "as a result of Section 9.2 (Occurrence of Client Self 

Referencing Transactions)";

(C) Section 9.1(d) (Compression of Affected Transactions prior to Auction) is 

amended in the case of CCM Clients only by inserting the words "that 

have a corresponding CCM Client Transaction with the affected CCM 

Client" immediately after the words "in respect of fungible Single Name 

Cleared Transactions";

(D) Section 9.1(e) (Auction Terms) is amended by deleting the words 

“(excluding the affected Clearing Member)” in the final paragraph 

thereof;

(E) Section 9.1(f) (Creation of New Transactions and Termination of Existing 

Transactions) is amended by deleting the words "other than the 

affected Clearing Member" in the first paragraph thereof; and

(F) Each reference to "affected Clearing Member" in Section 9.1 

(Occurrence of Clearing Member Self Referencing Transaction) is deleted 

and replaced with a reference to "relevant Clearing Member".

(c) Costs of LCH SA

The cost of the associated bid/offer spread and any reasonable out-of-pocket costs 

and expenses of LCH SA in connection with such auction(s) or any alternative action 

shall be allocated to the CCM Client Collateral Account or the FCM/BD Client Collateral 

Account as applicable.

10. MANDATORY PROVISIONS FOR CCM CLIENT TRANSACTIONS

In Appendix XIII, certain provisions are set-out (the "Mandatory Provisions") for 

incorporation into a CCM Client Transaction between a CCM and its CCM Client that 

corresponds to a CCM Client Cleared Transaction registered in the CCM Client Trade Account 

in the name of such CCM for such CCM Client. The CDS Clearing Supplement and these 

Mandatory Provisions have been drafted so as to complement each other. 
LCH SA © 2021 186 Published on 30 July 2021[●]

LCH SA shall not be responsible for any loss suffered or expense incurred by a CCM or any 

CCM Client as a result of the inclusion or non-inclusion of the Mandatory Provisions in the 

CCM Client Transaction Documents.

11. AMENDMENTS

LCH SA may amend the provisions of this CDS Clearing Supplement (including, without 

limitation, the Mandatory Provisions) from time to time so as to comply with any legal or 

regulatory developments or any recommendations adopted by the industry in respect of CDS 

or Cleared Transactions or CCM Client Transactions, as applicable, or so as to reflect any 

technological advancements, in each case in accordance with the provisions of Section 1.2.2 

(Modification) of Chapter 2 (General Provisions) of the CDS Clearing Rule Book. 

12. FORMS OF NOTICES

A form of Credit Event Notice, Notice to Exercise Movement Option, Notice of Physical 

Settlement, NOPS Amendment Notice, Asset Package Notice, notice to exercise alternative 

delivery procedure pursuant to Section 6.7 (Alternative Delivery Procedure), notice to fallback 

to Cash Settlement in respect of Non-Deliverable Obligations pursuant to Section 6.12

(Fallback to Cash Settlement in respect of Non-Deliverable Obligations), Physical Settlement 

Confirmation, No Physical Settlement Confirmation, notice of Clearing Member 

Communications Failure Event and where no longer subject to a Clearing Member 

Communications Failure Event, in each case pursuant to Section 7.6 (Clearing Member 

Communications Failure Event), notice of dispute relating to any Matched Pair as 

contemplated by Section 7.11 (Dispute as to Notices) and notice relating to Self-Referencing 

Transactions as contemplated by Section 9 (Self-Referencing Transactions) is set out in 

Appendix I, II, III, IVA, IVB, V, VI, VII, VIII, IX, X, XI and XII respectively hereto. 

Any of the above referenced notices shall be delivered in substantially the form appended 

hereto, provided, for the avoidance of doubt, that such notices may refer to multiple 

transactions and may have certain firm-specific variations.

For the avoidance of doubt, the above referenced notices shall be governed by and construed 

in accordance with English law.

13. EXCLUSION OF LIABILITY

Without prejudice to the provisions of Article 1.2.10.3 of the CDS Clearing Rule Book:

(a) No liability for Failure of Designee to perform in respect of Matched Pair

Without prejudice to its obligations under or in respect of a Cleared Transaction, LCH 

SA shall not be liable for any loss or cost arising out of any failure of any Clearing 

Member comprised in a Matched Pair to perform its obligations as designee of LCH SA 

against a related Matched Buyer or Matched Seller, as applicable. 
LCH SA © 2021 187 Published on 30 July 2021[●]

(b) No liability for Fault of Third Party or Force Majeure

LCH SA shall have no liability to any person where Restructuring Cleared Transactions 

are not or are improperly created, Restructuring Cleared Transactions are not or are 

improperly terminated or the Movement Option process is not or is improperly 

implemented, in each case for the purposes of the DTCC Rules, because of a third 

party’s fault or a force majeure event. In particular, LCH SA shall not incur any liability 

arising as a result of any action or omission of DTCC. 

(c) No Obligation to verify Notices received

LCH SA shall have no responsibility to verify the contents of any notice received by it 

from any Clearing Member under the terms of any Cleared Transaction. 

14. DISPUTE RESOLUTION

For the avoidance of doubt, all Disputes shall be referred to and finally resolved by arbitration 

or by litigation, as applicable, in accordance with the CDS Dispute Resolution Protocol, subject 

to the provisions of Sections 8 and 9 of the Procedures.

15. GOVERNING LAW

For the avoidance of doubt, the governing law applicable to this CDS Clearing Supplement 

(excluding the Mandatory Provisions to the extent that such terms are incorporated by 

reference in the CCM Client Transaction Documents entered into between a CCM and its CCM 

Client in respect of a CCM Client Transaction), the 2014 ISDA Credit Derivatives Definitions 

and any Cleared Transactions (and any related definitions or Clearing Notices issued in 

respect of the CDS Clearing Supplement, the 2014 ISDA Credit Derivatives Definitions or any 

Cleared Transactions) and any non-contractual obligations arising out of, relating to or having 

any connection with them shall be as set out in Section 1.2.14 (Governing Law) of the CDS 

Clearing Rule Book.
APPENDIX I: FORM OF CREDIT EVENT NOTICE

To: [Restructuring Matched Pair Counterparty Address and Contact Information]

[To/Copy to:]

LCH SA

18, rue du Quatre Septembre

75002 Paris

France

[Contact details]

CREDIT EVENT NOTICE: 

Credit Derivative Transaction Details: As set out in the Schedule hereto2.

Reference is made to the Credit Derivative Transaction[s] described in the Schedule hereto (the 

Transaction[s]). Capitalised terms used and not otherwise defined in this letter shall have the 

meanings given them in the confirmation of the relevant Transaction. 

This letter is our Credit Event Notice to you that a [insert type] Credit Event occurred with respect to 

[insert name of Reference Entity] on or about [insert date], when [describe Credit Event].

Nothing in this letter shall be construed of a waiver of any rights we may have with respect to the 

Transaction.

Sincerely 

[Clearing Member]

________________________

Name:

Title:

2 A single Credit Event Notice may be submitted for multiple trades in respect of the same Counterparty
SCHEDULE

Credit Derivative Transaction Details

[Clearing 

Member] acting 

as Seller/Buyer

Restructuring 

Matched Pair ID

Trade ID Reference 

Entity

Trade Date Effective 

Date

Exercise 

Amount3

[Seller]

[Buyer]

[⚫] [⚫] [⚫] [⚫] [⚫] [⚫]

3 Where different to the outstanding Floating Rate Payer Calculation Amount
APPENDIX II: FORM OF NOTICE TO EXERCISE MOVEMENT OPTION

To: [Restructuring Matched Pair Counterparty Address and Contact Information]

[To/Copy to:]

LCH SA

18, rue du Quatre Septembre

75002 Paris

France

[Contact details]

Dear Sir/Madam 

Notice to Exercise Movement Option

Credit Derivative Transaction Details: As set out in the Schedule hereto4.

Reference is made to: (a) the Credit Derivative Transaction[s] described in the Schedule hereto (the 

Transaction[s]) between [ ], as Seller, and [ ], as Buyer; (b) the Credit Event Notice dated insert 

date], previously delivered to you on [insert date]; and (c) the occurrence of the No Auction 

Announcement Date on [insert date] pursuant to Section 6.11(b) or Section 6.11(c)(ii) of the 2014 ISDA 

Credit Derivatives Definitions (the Definitions).

This letter constitutes a Notice to Exercise Movement Option. Any capitalised term not otherwise 

defined in this letter will have the meaning, if any, assigned to such term in the confirmation of the 

relevant Transaction or, if no meaning is specified therein, in the Definitions.

We hereby exercise the Movement Option, confirm that each Transaction will be settled in accordance 

with the relevant Credit Derivatives Auction Settlement Terms specified in the column entitled 

"Auction Settlement Terms" corresponding to such Transaction in the Schedule hereto and require 

performance by you in accordance therewith.

Yours faithfully,

[Matched Buyer/Matched Seller]

________________________

Name:

Title:

4 A single Notice to Exercise Movement Option may be submitted for multiple trades in respect of the same 

Counterparty
SCHEDULE

Credit Derivative Transaction Details

Restructuring 

Matched Pair ID

Trade ID Reference 

Entity

Trade Date Effective Date Auction 

Settlement 

Terms

[⚫] [⚫] [⚫] [⚫] [⚫] [⚫]
APPENDIX III: FORM OF NOTICE OF PHYSICAL SETTLEMENT

To: Settlement Matched Pair Matched Seller Address and Contact Information

Copy to:

LCH SA

18, rue du Quatre Septembre

75002 Paris

France

[Contact details]

Notice of Physical Settlement

Credit Derivative Transaction Details: As set out in the Schedule hereto5.

Reference is made to: (a) the Credit Derivative Transaction[s] described in the Schedule hereto (the 

Transaction[s]) between [ ], as Seller, and [ ], as Buyer. Reference is also made to the Credit 

Event Notice [and Notice of Publicly Available Information] dated [insert date], previously delivered to 

you on [insert date].

This letter constitutes a Notice of Physical Settlement. Any capitalised term not otherwise defined in 

this letter will have the meaning, if any, assigned to such term in the confirmation of the relevant 

Transaction (the Relevant Confirmation) or, if no meaning is specified therein, in the 2014 ISDA Credit 

Derivatives Definitions (the Definitions).

We hereby confirm that we will settle the Transaction[s] and require performance by you in 

accordance with the provisions of the Relevant Confirmation and the Definitions relating to Physical 

Settlement. Subject to the terms of the relevant Transaction, we will Deliver to you on or before the 

Physical Settlement Date, an amount of the Deliverable Obligation(s) described in the column entitled 

"Deliverable Obligation(s)" in the Schedule hereto, corresponding to such Transaction:

Yours faithfully,

[Matched Buyer]

________________________

Name:

Title:

5 A single Notice of Physical Settlement may be submitted for multiple trades in respect of the same Counterparty
SCHEDULE

Credit Derivative Transaction Details

Settlement Matched 

Pair ID

Trade ID Reference Entity Trade Date Effective Date Deliverable 

Obligation(s)6

[⚫] [⚫] [⚫] [⚫] [⚫] [Currency][Due and 

Payable Amount]][⚫]

6 Describe the Deliverable Obligation(s) to be Delivered, including the currency and Outstanding Principal Balance or Due and Payable Amount for each such Deliverable 

Obligation and, if available and applicable, the CUSIP or ISIN number (or, if such identifying number is not available, the rate and tenor of the Deliverable Obligation)
APPENDIX IVA: FORM OF NOPS AMENDMENT NOTICE

To: Settlement Matched Pair Matched Seller Address and Contact Information

Copy to:

LCH SA

18, rue du Quatre Septembre

75002 Paris

France

[Contact details]

Settlement Matched Pair ID: [⚫]

Trade ID: [⚫]

NOPS Amendment Notice

Credit Derivative Transaction Details: [Trade Date], [Effective Date], [Reference Entity]

Reference is made to the Credit Derivative Transaction described above (the Transaction) between [ 

], as Seller, and [ ], as Buyer. Reference is also made to the Notice of Physical Settlement] 

NOPS Amendment Notice] dated [insert date], previously delivered to you on [insert date] dated 

[insert date].

This letter constitutes a NOPS Amendment Notice. Any capitalised term not otherwise defined in this 

letter will have the meaning, if any, assigned to such term in the Confirmation of the Transaction or, 

if no meaning is specified therein, in the CDS Clearing Supplement.

We hereby notify you that we are replacing the following Deliverable Obligation(s) specified in the 

Notice of Physical Settlement] NOPS Amendment Notice] specified above with the following 

Replacement Deliverable Obligation(s):

[describe the Deliverable Obligation(s) to be replaced, including the Replaced Deliverable Obligation 

Outstanding Amount for each such Deliverable Obligation and, if available and applicable, the CUSIP 

or ISIN number (or, if such identifying number is not available, the rate and tenor of the Deliverable 

Obligation) and the Replacement Deliverable Obligation(s) for each Replaced Deliverable Obligation 

Outstanding Amount so specified and, if available and applicable, the CUSIP or ISIN number (or, if such 

identifying number is not available, the rate and tenor of the Replacement Deliverable Obligation)].

Yours faithfully,

[Matched Buyer]

________________________

Name:

Title:
APPENDIX IVB: FORM OF ASSET PACKAGE NOTICE

To: Settlement Matched Pair Matched Seller Address and Contact Information

Copy to:

LCH SA

18, rue du Quatre Septembre

75002 Paris

France

[Contact details]

Settlement Matched Pair ID: [⚫]

Trade ID: [⚫]

Asset Package Notice

Credit Derivative Transaction Details: [Trade Date], [Effective Date], [Reference Entity]

Reference is made to the Credit Derivative Transaction described above (the Transaction) between [ 

], as Seller, and [ ], as Buyer. Reference is also made to the Notice of Physical Settlement] 

[NOPS Amendment Notice] dated [insert date], previously delivered to you on [insert date] dated 

[insert date].

This letter constitutes an Asset Package Notice. Any capitalised term not otherwise defined in this 

letter will have the meaning, if any, assigned to such term in the Confirmation of the Transaction or, 

if no meaning is specified therein, in the CDS Clearing Supplement.

We hereby notify you that our obligation to Deliver the following Deliverable Obligation(s) specified 

in the Notice of Physical Settlement] NOPS Amendment Notice] specified above shall be satisfied by 

Delivery of the following Asset Package:

[describe the Deliverable Obligation(s) to which the Asset Package relates, including the Deliverable 

Obligation Amount for each such Deliverable Obligation and, if available and applicable, the CUSIP or 

ISIN number (or, if such identifying number is not available, the rate and tenor of the Deliverable 

Obligation) and the Assets comprising the Asset Package for each such Deliverable Obligation(s) and, 

if available and applicable, the CUSIP or ISIN number (or, if such identifying number is not available, 

the rate and tenor of the Asset, if applicable)].

Yours faithfully,

[Matched Buyer]

________________________

Name:

Title:
APPENDIX V: FORM OF NOTICE TO EXERCISE ALTERNATIVE DELIVERY PROCEDURE PURSUANT TO 

SECTION 6.7 (ALTERNATIVE DELIVERY PROCEDURE)

To:

LCH SA

18, rue du Quatre Septembre

75002 Paris

France

[Contact details]

[date]

Dear Sir/Madam 

Notice to Exercise Alternative Delivery Procedure7

Reference is made to: the Settlement Matched Pairs described in the Schedule hereto, being the 

Settlement Matched Pairs to which this notice relates and Section 6.7 (Alternative Delivery Procedure) 

of the CDS Clearing Supplement. Defined terms shall have the meanings assigned to them in the CDS 

Clearing Supplement, unless otherwise defined herein.

The Settlement Matched Pair Delivery Amount relating to each Settlement Matched Pair is that 

amount specified in the column entitled "Settlement Matched Pair Delivery Amount" in the Schedule 

hereto, corresponding to such Settlement Matched Pair.

In respect of each Settlement Matched Pair and in accordance with Section 6.7 (Alternative Delivery 

Procedure) we hereby elect to exercise our rights against and perform obligations to you in accordance 

with the alternative delivery procedure in relation to such percentage and amount of the Settlement 

Matched Pair Delivery Amount as set out in the column entitled "Percentage and Amount of 

Settlement Matched Pair Delivery Amount" in the Schedule hereto corresponding to such Settlement 

Matched Pair.

This notice may be executed in any number of counterparts which togethershall constitute one notice. 

By countersigning this notice, you are deemed to have given your consent to the above in satisfaction 

of the requirement to obtain your consent contained in Section 6.7 (Alternative Delivery Procedure) 

of the CDS Clearing Supplement.

This notice (and any dispute, controversy, proceedings or claim of whatever nature arising out of or in 

any way relating to this agreement or its formation) shall be governed by and construed in accordance 

with English law.

Yours faithfully,

[Matched Buyer/ Matched Seller]

7 A single Notice to Exercise Alternative Delivery Procedure may be submitted for multiple trades in respect of the 

same Counterparty
________________________

Name:

Title:

Countersigned by LCH SA

________________________

Name:

Title:
SCHEDULE

Credit Derivative Transaction Details

Settlement Matched 

Pair ID

Trade ID Reference Entity Trade Date Effective Date Settlement Matched 

Pair Delivery 

Amount 

Percentage and 

amount of 

Settlement Matched 

Pair Delivery 

Amount

[⚫] [⚫] [⚫] [⚫] [⚫] [⚫] [⚫]
APPENDIX VI: FORM OF NOTICE OF FALLBACK TO CASH SETTLEMENT OF NON-DELIVERABLE 

OBLIGATIONS PURSUANT TO SECTION 6.12 (FALLBACK TO CASH SETTLEMENT IN RESPECT OF NONDELIVERABLE OBLIGATIONS)

To: Settlement Matched Pair Matched Seller Address and Contact Information

To:

LCH SA

18, rue du Quatre Septembre

75002 Paris

France

[Contact details]

Settlement Matched Pair ID: [⚫]

Trade ID: [⚫]

Dear Sir/Madam 

Notice of fallback to Cash Settlement in respect of Non-Deliverable Obligations pursuant to Section 

6.12 (Fallback to Cash Settlement in respect of Non-Deliverable Obligations) of the CDS Clearing 

Supplement

Reference is made to Section 6.12 (Fallback to Cash Settlement in respect of Non-Deliverable 

Obligations) of the CDS Clearing Supplement and [insert details of the relevant Settlement Matched 

Pair(s)], being the Settlement Matched Pair[s] to which this notice relates and to the [Notice of 

Physical Settlement][NOPS Amendment Notice] previously delivered to you on [insert date] dated 

[insert date]. Defined terms shall have the meanings assigned to them in the CDS Clearing Supplement, 

unless otherwise defined herein.

In accordance with Section 6.12 (Fallback to Cash Settlement in respect of Non-Deliverable 

Obligations) of the CDS Clearing Supplement we hereby notify you we are not permitted to Deliver 

the Deliverable Obligations specified below (such Deliverable Obligations, the Non-Deliverable 

Obligations) as specified in the [Notice of Physical Settlement][NOPS Amendment Notice] specified 

above for the following reasons:

[Insert details of the relevant Non-Deliverable Obligations and reasonable detail of the relevant 

circumstances, as described paragraphs (a)(i) and (a)(ii) of Section 6.12 of the CDS Clearing 

Supplement].

This notice (and any dispute, controversy, proceedings or claim of whatever nature arising out of or in 

any way relating to this agreement or its formation) shall be governed by and construed in accordance 

with English law.

Yours faithfully,
[Matched Buyer]

________________________

Name:

Title:
APPENDIX VII: FORM OF PHYSICAL SETTLEMENT CONFIRMATION AS CONTEMPLATED BY SECTION 

6.19 (MISCELLANEOUS PROVISIONS RELATING TO PHYSICAL SETTLEMENT)

To:

LCH SA

18, rue du Quatre Septembre

75002 Paris

France

[Contact details]

[date]

Dear Sir/Madam 

Physical Settlement Confirmation

Reference is made to Section 6.19(b) (Notification of Completion of Physical Settlement) of the CDS 

Clearing Supplement and the Settlement Matched Pair[s] described in the Schedule hereto, being the 

Settlement Matched Pair[s] to which this notice relates. Defined terms shall have the meanings 

assigned to them in the CDS Clearing Supplement, unless otherwise defined herein.

In accordance with Section 6.19(b) (Notification of Completion of Physical Settlement) of the CDS 

Clearing Supplement, we hereby notify you that we have completed Physical Settlement with respect 

to such Settlement Matched Pair[s].

This notice is delivered in satisfaction of the requirement in Section 6.19(b) (Notification of Completion 

of Physical Settlement) of the CDS Clearing Supplement to inform you of such completion.

This notice (and any dispute, controversy, proceedings or claim of whatever nature arising out of or in 

any way relating to this agreement or its formation) shall be governed by and construed in accordance 

with English law.

Yours faithfully,

[Matched Buyer]/[Matched Seller]

________________________

Name:

Title:
SCHEDULE

Settlement Matched Pair Details

Settlement Matched 

Pair ID

Trade ID Reference Entity Trade Date Effective Date

[⚫] [⚫] [⚫] [⚫] [⚫]
APPENDIX VIII: FORM OF NO PHYSICAL SETTLEMENT CONFIRMATION AS CONTEMPLATED BY 

SECTION 6.19 (MISCELLANEOUS PROVISIONS RELATING TO PHYSICAL SETTLEMENT)

To:

LCH SA

18, rue du Quatre Septembre

75002 Paris

France

[Contact details]

[date]

Settlement Matched Pair ID: [⚫]

Trade ID: [⚫]

Dear Sir/Madam 

No Physical Settlement Confirmation

Reference is made to Section 6.19(c) (Notification that Physical Settlement will not occur) of the CDS 

Clearing Supplement and the Settlement Matched Pair[s] described in the Schedule hereto, being the 

Settlement Matched Pair[s] to which this notice relates. Defined terms shall have the meanings 

assigned to them in the CDS Clearing Supplement, unless otherwise defined herein.

In accordance with Section 6.19(c) (Notification that Physical Settlement will not occur) of the CDS 

Clearing Supplement, we hereby notify you that no Notice of Physical Settlement has been delivered 

within the relevant time period permitted for such delivery in accordance with the terms of the 

relevant Physically Settled Cleared Transactions and, accordingly, that Physical Settlement will not, 

under the terms of such Physically Settled Cleared Transactions, occur.

This notice is delivered in satisfaction of the requirement in Section 6.19(c) (Notification that Physical 

Settlement will not occur) of the CDS Clearing Supplement to inform you of such completion.

This notice (and any dispute, controversy, proceedings or claim of whatever nature arising out of or in 

any way relating to this agreement or its formation) shall be governed by and construed in accordance 

with English law.

Yours faithfully,

[Matched Buyer]/[Matched Seller]

________________________

Name:

Title:
SCHEDULE

Settlement Matched Pair Details

Settlement Matched 

Pair ID

Trade ID Reference Entity Trade Date Effective Date

[⚫] [⚫] [⚫] [⚫] [⚫]
APPENDIX IX: FORM OF NOTICE OF CLEARING MEMBER COMMUNICATIONS FAILURE EVENT 

PURSUANT TO SECTION 7.6 (CLEARING MEMBER COMMUNICATIONS FAILURE EVENT)

To:

LCH SA

18, rue du Quatre Septembre

75002 Paris

France

[Contact details]

[date]

Dear Sir/Madam 

Notice certifying occurrence of a Clearing Member Communications Failure Event

Reference is made to Section 7.6(b) (Clearing Member to notify LCH SA of Occurrence of Clearing 

Member Communications Failure Event) of the CDS Clearing Supplement. Defined terms shall have 

the meanings assigned to them in the CDS Clearing Supplement, unless otherwise defined herein.

In accordance with Section 7.6(b) (Clearing Member to notify LCH SA of Occurrence of Clearing 

Member Communications Failure Event) of the CDS Clearing Supplement, notice is hereby given that 

we are affected by a Clearing Member Communications Failure Event [insert details of such failure].

This notice (and any dispute, controversy, proceedings or claim of whatever nature arising out of or in 

any way relating to this agreement or its formation) shall be governed by and construed in accordance 

with English law.

Yours faithfully,

[Clearing Member]

________________________

Name:

Title:

[Signed by a senior officer (such as a managing director or equivalent) on behalf of the Clearing 

Member]
APPENDIX X: FORM OF NOTICE FOR CEASING TO BE SUBJECT TO A CLEARING MEMBER 

COMMUNICATIONS FAILURE EVENT PURSUANT TO SECTION 7.6 (CLEARING MEMBER 

COMMUNICATIONS FAILURE EVENT)

To:

LCH SA

18, rue du Quatre Septembre

75002 Paris

France

[Contact details]

[date]

Dear Sir/Madam 

Notice that a Clearing Member is no longer subject to Clearing Member Communications Failure 

Event 

Reference is made to Section 7.6(d) (Notification of Resolution of Clearing Member Communications 

Failure Event) of the CDS Clearing Supplement and the notice certifying the occurrence of a Clearing 

Member Communications Failure Event delivered by us to LCH SA on [⚫] (the Notice of Clearing 

Member Communications Failure Event). Defined terms shall have the meanings assigned to them 

in the CDS Clearing Supplement, unless otherwise defined herein.

In accordance with Section 7.6(d) (Notification of Resolution of Clearing Member Communications 

Failure Event) of the CDS Clearing Supplement, notice is hereby given that we are no longer subject to 

the relevant Clearing Member Communications Failure Event described in the Notice of Clearing 

Member Communications Failure Event.

This notice (and any dispute, controversy, proceedings or claim of whatever nature arising out of or in 

any way relating to this agreement or its formation) shall be governed by and construed in accordance 

with English law.

Yours faithfully,

[Clearing Member]

________________________

Name:

Title:
APPENDIX XI: FORM OF NOTICE OF DISPUTE RELATING TO ANY MATCHED PAIR

To:

LCH SA

18, rue du Quatre Septembre

75002 Paris

France

[Contact details]

[date]

[Restructuring][Settlement] Matched Pair ID: [⚫]

Trade ID: [⚫]

Dear Sir/Madam 

Notice of dispute relating to [insert details of the relevant Matched Pairs subject to a dispute]

Reference is made to Section 7.11 (Disputes as to Notices) of the CDS Clearing Supplement. Defined 

terms shall have the meanings assigned to them in the CDS Clearing Supplement, unless otherwise 

defined herein.

In accordance with Section 7.11 (Disputes as to Notices) of the CDS Clearing Supplement, notice is 

hereby given of the following dispute(s):

[insert details of Matched Pair(s) affected and the relevant dispute].

This notice (and any dispute, controversy, proceedings or claim of whatever nature arising out of or in 

any way relating to this agreement or its formation) shall be governed by and construed in accordance

with English law.

Yours faithfully,

[Matched Buyer]/[Matched Seller]

________________________

Name:

Title:
APPENDIX XII: FORM OF NOTICE RELATING TO SELF-REFERENCING TRANSACTIONS

To:

LCH SA

18, rue du Quatre Septembre

75002 Paris

France

[Contact details]

[date]

Dear Sir/Madam 

Notice relating to Self-Referencing Transactions 

Credit Derivative Transaction Details: As set out in the Schedule hereto8.

Reference is made to the Credit Derivative Transaction[s] described in the Schedule hereto (the 

Transaction[s]) between [⚫], as Seller and [⚫], as Buyer and to Section 9.1(a) (Duty to notify) of the 

CDS Clearing Supplement. Defined terms shall have the meanings assigned to them in the CDS Clearing 

Supplement, unless otherwise defined herein.

In accordance with Section 9.1(a) (Duty to notify) of the CDS Clearing Supplement, notice is hereby 

given of the following: [insert details of one or more of the relevant events, as set out in paragraphs 

(i), (ii) and (iii) of Section 9.1(a) (Duty to notify) of the CDS Clearing Supplement].

This notice (and any dispute, controversy, proceedings or claim of whatever nature arising out of or in 

any way relating to this agreement or its formation) shall be governed by and construed in accordance 

with English law.

Yours faithfully,

[Clearing Member]

________________________

Name:

Title:

8 A single Credit Event Notice may be submitted for multiple trades in respect of the same Counterparty
SCHEDULE

Credit Derivative Transaction Details

[Restructuring] 

Matched Pair ID

Trade ID Reference Entity Trade Date Effective Date

[⚫] [⚫] [⚫] [⚫] [⚫]
APPENDIX XIII: CCM CLIENT TRANSACTION REQUIREMENTS

The following provisions (the "Mandatory Provisions") are to be incorporated into a CCM Client 

Transaction between a CCM and its CCM Client that corresponds to a CCM Client Cleared Transaction 

registered in the CCM Client Trade Account in the name of such CCM for such CCM Client. The terms 

of the corresponding CCM Client Cleared Transaction will be governed by the CDS Clearing 

Supplement. The CDS Clearing Supplement and these Mandatory Provisions have been drafted so as 

to complement each other.

LCH SA shall not be responsible for any loss suffered or expense incurred by a CCM or any CCM Client 

as a result of the inclusion in the CCM Client Transaction Documents of the requirements set-out in 

this Appendix XIII.

The Mandatory Provisions, when they are incorporated into any CCM Client Transaction Documents, 

shall be governed by and construed in accordance with the governing law applicable to such CCM 

Client Transaction Documents of which they form part, or if different and applicable, in accordance 

with such CCM Client Transaction Documents, the governing law applicable to transactions entered 

into under such CCM Client Transaction Documents. The Mandatory Provisions shall be subject to such 

dispute resolution mechanisms and procedures and such courts or other forum for hearing disputes 

as are applicable in respect of such CCM Client Transaction Documents of which they form part. Each 

CCM and its CCM Client to which the Mandatory Provisions apply will waive any right to object to any 

such choice of law or proceedings on the basis of forum non conveniens, that the governing law or 

forum is not specified on the face of this document or otherwise.

In this Appendix XIII:

"CCM Client Buyer" means a CCM Client that is party to a CCM Client Transaction as protection buyer; 

"CCM Client Seller" means a CCM Client that is party to a CCM Client Transaction as protection seller; 

"CCM Buyer/Matched Seller" means a CCM that is party to a CCM Client Transaction as protection 

buyer and to the corresponding CCM Client Cleared Transaction as protection seller; and

"CCM Seller/Matched Buyer" means a CCM that is party to a CCM Client Transaction as protection 

seller and to the corresponding CCM Client Cleared Transaction as protection buyer.

1. Defined Terms

Terms used in the Mandatory Provisions and not otherwise defined herein or in the 2014 

ISDA Credit Derivatives Definitions shall have the meanings given to them in the CDS Clearing 

Supplement.

2. Terms of CCM Client Transactions

2.1 2014 ISDA Credit Derivatives Definitions

The definitions and provisions contained in the 2014 ISDA Credit Derivatives Definitions 

published by the International Swaps and Derivatives Association (“ISDA”) (the "2014 ISDA 

Credit Derivatives Definitions"), are incorporated into each CCM Client Transaction.
2.2 Single Name CCM Client Transactions - Reference Obligation

With effect from the date on which the CCM Client Cleared Transaction corresponding to a 

Single Name CCM Client Transaction is registered in the TIW, such Single Name CCM Client 

Transaction shall be deemed to reference the Standard Reference Obligation, provided that 

if there is no Standard Reference Obligation, such Single Name CCM Client Transaction shall 

be deemed to reference the CDSClear Preferred Reference Obligation.

2.3 Single Name CCM Client Transactions - Updating Physical Settlement Matrix

With effect from the date on which the CCM Client Cleared Transaction corresponding to a 

Single Name CCM Client Transaction is registered in the TIW, such Single Name CCM Client 

Transaction shall be deemed to reference the Relevant Physical Settlement Matrix.

With effect from the close of business on any Matrix Re-versioning Date, any Single Name 

CCM Client Transaction referencing the Existing Matrix will be deemed to have been 

amended so as to reference the Revised Matrix. 

2.4 Index CCM Client Transactions - Updating Eligible Index Versions

Upon the occurrence of a DTCC Re-versioning Date, any Index CCM Client Transaction shall 

be automatically amended so as to reference the portfolio of Reference Entities specified in 

the revised version of the index published by the Index Publisher and referenced in the TIW 

with effect from such DTCC Re-versioning Date.

2.5 Initial Payment Date

Notwithstanding anything to the contrary in the 2014 ISDA Credit Derivatives Definitions, if 

the Initial Payment Date specified in the CCM Client Transaction Documents in respect of any 

CCM Client Transaction is a date falling after the Clearing Day on which the Cleared 

Transactions related to such CCM Client Transaction are created by novation pursuant to Title 

III (Clearing Operations) of the CDS Clearing Rule Book, the Initial Payment Date in respect of 

such CCM Client Transaction shall be deemed to be the Transaction Business Day immediately 

following the Clearing Day on which the Cleared Transactions relating to such CCM Client 

Transaction are created.

2.6 ISDA 2019 NTCE Protocol

The Protocol Effectiveness Condition (as defined in the ISDA 2019 NTCE Protocol published 

by ISDA on 27 August 2019 and as further supplemented from time to time (the "2019 NTCE 

Protocol")) being satisfied, then from and including the Implementation Date (as defined in 

the 2019 Protocol) the amendments set forth in Schedule 1 (Amendments) of the 2019 NTCE 

Protocol shall apply to each Index CCM Client Transaction and each Single Name CCM Client 

Transaction which incorporates the 2014 ISDA Credit Derivatives Definitions and each such 

CCM Client Transaction shall be a Protocol Covered Transaction for the purposes of the 2019

NTCE Protocol provided that:

(i) the date on which the CCM Client Cleared Transaction corresponding to such CCM 

Client Transaction is registered in the TIW is prior to the Implementation Date;
(ii) such CCM Client Transaction is not an Excluded Transaction (as defined in the 2019

NTCE Protocol) provided that if such CCM Client Transaction relates to more than one 

Reference Entity and would otherwise be a Protocol Covered Transaction but for the 

inclusion of any Affected Portion (as defined in the 2019 NTCE Protocol) therein, such 

Affected Portion shall be excluded for the purposes of this Mandatory Provision 2.6

and the remaining portion of such CCM Client Transaction shall be deemed to be a 

Protocol Covered Transaction;

(iii) the Scheduled Termination Date in respect of such CCM Client Transaction is on or 

after the Implementation Date; and

(iv) no Event Determination Date has occurred in respect of such CCM Client Transaction 

prior to the Implementation Date.

3. Additional CCM Client Transactions, Compression and Succession Events

3.1 Creation of Additional CCM Client Transactions

Immediately following: 

(a) the creation of Matched Pairs by LCH SA pursuant to Section 8.1 (Creation of Matched 

Pairs) of the CDS Clearing Supplement; or

(b) the creation of Resulting Single Name Cleared Transactions pursuant to Section 4.4

(Re-couponing of Restructuring Cleared Transactions) of the CDS Clearing 

Supplement, 

if a CCM Client Transaction has been specified to have been split into or replaced by two or 

more separate CCM Client Transactions in the TIW as a result of the creation of such Matched 

Pairs or Resulting Single Name Cleared Transactions, such CCM Client Transaction shall be 

split into or terminated and replaced by two or more (as applicable) corresponding CCM 

Client Transactions. The Floating Rate Payer Calculation Amount and Fixed Rate of each such 

CCM Client Transaction shall correspond to the Floating Rate Payer Calculation Amount and 

Fixed Rate specified in TIW for such CCM Client Transaction. In respect of CCM Client 

Transactions created as a result of the creation of Resulting Single Name Cleared 

Transactions, the Trade Date of such new CCM Client Transactions shall be the same as the 

Trade Date of the equivalent Resulting Single Name Cleared Transactions. Otherwise, each 

new CCM Client Transaction shall have the same terms as the original CCM Client Transaction.

3.2 Reversal of Creation of Additional CCM Client Transactions

If a CCM Client Transaction has been split into two or more CCM Client Transactions pursuant 

to Mandatory Provision 3.1 (Creation of Additional CCM Client Transactions) above and the 

relevant DC Credit Event Announcement that led to the creation of the Matched Pairs is 

reversed such that Section 5.5 (Reversal of DC Credit Event Announcements) of the CDS 

Clearing Supplement applies, then, subject to Section 10.2(a)(i) of the 2014 ISDA Credit 

Derivatives Definitions, any additional CCM Client Transactions created pursuant to 

Mandatory Provision 3.1 (Creation of Additional CCM Client Transactions) above shall be 
deemed not to have been created and any Credit Event Notices delivered in connection with 

such CCM Client Transactions shall be deemed to be ineffective. 

3.3 Compression of CCM Client Transactions

If two or more CCM Client Transactions are specified in TIW to have been compressed into a 

single CCM Client Transaction pursuant to Chapter 3 (Compression) of Title III (Clearing 

Operations) of the CDS Clearing Rule Book, such CCM Client Transactions shall be compressed 

into a single CCM Client Transaction with a Floating Rate Payer Calculation Amount equal to 

the aggregate Floating Rate Payer Calculation Amounts of the original CCM Client 

Transactions.

3.4 Succession Events and Cleared Transactions

If LCH SA takes any action with respect to a CCM Client Cleared Transaction pursuant to 

Section 4.5 (Succession Events and Cleared Transactions) of the CDS Clearing Supplement so 

as to give effect to a Succession Event, such action shall also be deemed to have been taken 

with respect to the corresponding CCM Client Transaction.

4. Notices

4.1 Validity of Notices

Save if and as expressly stated to the contrary in the Mandatory Provisions, any notice 

delivered by a CCM Client to its CCM in respect of a CCM Client Transaction (including, 

without limitation, a Credit Event Notice, Notice of Physical Settlement, Notice to Exercise 

Movement Option or NOPS Amendment Notice) at a time or in a manner in which the CCM 

would not be permitted to deliver such a notice to LCH SA (or to a relevant Matched Buyer 

or Matched Seller as designee of LCH SA (as applicable)) in respect of the corresponding CCM 

Client Cleared Transaction pursuant to the terms of the CDS Clearing Supplement shall be 

deemed not to have been delivered.

4.2 Credit Event Notices and NEMOs given via DTCC

(a) Credit Event Notices and NEMOs to be given via DTCC

Credit Event Notices and Notices to Exercise Movement Option shall be delivered by 

way of the relevant DTCC Notice Facility, save if and as expressly stated to the contrary 

in the Mandatory Provisions or otherwise agreed between the parties to the CCM 

Client Transaction. The deemed time of delivery of any such notices shall be as set out 

in the DTCC Rules from time to time.

(b) Credit Event Notices and NEMOs delivered in respect of corresponding CCM Client 

Cleared Transaction

In respect of a CCM Client Transaction, if: 

(i) CCM Seller/Matched Buyer or CCM Buyer/Matched Seller delivers a valid Credit 

Event Notice or Notice to Exercise Movement Option in respect of the 
corresponding CCM Client Cleared Transaction by way of the relevant DTCC 

Notice Facility; or 

(ii) a Credit Event Notice or Notice to Exercise Movement Option is deemed to 

have been delivered in respect of the corresponding CCM Client Cleared 

Transaction pursuant to Section 7.3(b) (Credit Event Notices and NEMOs 

delivered in respect of CCM Client Transaction) of the CDS Clearing Supplement 

as a result of the receipt of a valid Credit Event Notice or Notice to Exercise 

Movement Option (as applicable) by way of the relevant DTCC Notice Facility 

in respect of the CCM Client Transaction between the other CCM of a Matched 

Pair and its CCM Client,

and a Credit Event Notice or Notice to Exercise Movement Option (as applicable) has 

not already been given in respect of such CCM Client Transaction in accordance with 

Mandatory Provision 4.4 (Communications Failure Event) such notice (or deemed 

notice) shall be deemed also to be a Credit Event Notice or Notice to Exercise 

Movement Option (as applicable) for the purposes of such CCM Client Transaction.

4.3 Consequences of DTCC Failure

If a DTCC Failure Event occurs, from (and including) the DTCC Failure Event Time to (but 

excluding) the DTCC Resolution Time:

(a) Mandatory Provision 4.2(a) (Credit Event Notices and NEMOs to be given via DTCC) 

shall not apply and accordingly Credit Event Notices and Notices to Exercise 

Movement Option shall be delivered directly (and not via the relevant DTCC Notice 

Facility);

(b) any notice delivered via the relevant DTCC Notice Facility prior to the DTCC Failure 

Event Time will be valid and will not be affected by such DTCC Failure Event; and

(c) any notice delivered or purported to be delivered via the relevant DTCC Notice Facility 

at or following the DTCC Failure Event Time but prior to the DTCC Resolution Time 

will not be valid and effective.

Mandatory Provision 4.2(a) (Credit Event Notices and NEMOs to be given via DTCC) shall apply 

with effect from the DTCC Resolution Time and, accordingly, any notice thereafter delivered 

or purported to be delivered directly (and not via the relevant DTCC Notice Facility) will not 

be valid and effective.

4.4 Communications Failure Event

(a) Right to deliver Notices manually following Communications Failure Event

If a party is affected by a significant communications or information technology failure 

resulting in it being impossible or impractical for such party to deliver any Credit Event 

Notice in relation to an M(M)R Restructuring or any Notice to Exercise Movement 

Option via a relevant DTCC Notice Facility (a "Communications Failure Event") it may, 

notwithstanding Mandatory Provision 4.2(a) (Credit Event Notices and NEMOs to be 
given via DTCC), deliver Credit Event Notices and Notices to Exercise Movement 

Option directly (and not via the relevant DTCC Notice Facility). 

Such party shall deliver, together with any Credit Event Notice or Notice to Exercise 

Movement Option delivered by it directly, a notice signed by a senior officer (such as 

a managing director or equivalent) of such party certifying that it is affected by a 

Communications Failure Event (or, if such party is unable to deliver such notice in 

writing, orally by telephone). 

(b) Notices to party affected by Communications Failure Event

For the avoidance of doubt, Mandatory Provision 4.2(a) (Credit Event Notices and 

NEMOs to be given via DTCC) shall continue to apply in respect of notices given by the 

party not affected by the Communications Failure Event to the party affected by the 

Communications Failure Event.

(c) Notification of Resolution of Communications Failure Event

As soon as reasonably practicable upon a party ceasing to be subject to a 

Communications Failure Event, it shall notify the other party accordingly and 

thereupon Mandatory Provision 4.2(a) (Credit Event Notices and NEMOs to be given 

via DTCC) shall apply and, accordingly, any notice thereafter delivered or purported to 

be delivered directly (and not via the relevant DTCC Notice Facility) will not be valid 

and effective.

(d) Duty to Mitigate

A party which is subject to a Communications Failure Event shall use reasonable 

endeavours to mitigate the operational impact on the other party of any 

Communications Failure Event, to cure such Communications Failure Event as soon as 

possible and to ensure that the circumstances giving rise to the relevant 

Communications Failure Event do not recur.

(e) Breach does not Invalidate Valid Notices

Without prejudice to any other rights or remedies of the parties, any breach by a party 

of the provisions of this Mandatory Provision 4.4 shall not cause any Credit Event 

Notice or Notice to Exercise Movement Option delivered otherwise than in 

accordance with the terms of the relevant CCM Client Transaction, which would 

otherwise be valid and effective, to be invalid or ineffective.

4.5 Uncertain Delivery

(a) Manual Notice permitted if Delivery of Notice in DTCC uncertain

Notwithstanding Mandatory Provision 4.2(a) (Credit Event Notices and NEMOs to be 

given via DTCC), where such notices are permitted to be delivered by means other 

than the relevant DTCC Notice Facility pursuant to this Mandatory Provision 4

(Notices), and a party is uncertain as to whether or not a Credit Event Notice or Notice 
to Exercise Movement Option (as applicable) it attempted to deliver via a DTCC Notice 

Facility has: 

(i) actually been delivered; or 

(ii) was delivered prior to the DTCC Failure Time, 

that party shall be entitled to deliver such a notice directly to the other party specifying 

that such notice is only to be effective to the extent that the other purported notice is 

not effective. 

(b) Details to be provided of Uncertain Notice

If a party delivers a manual notice pursuant to Mandatory Provision 4.5(a) (Manual 

Notice permitted if Delivery of Notice in DTCC uncertain) above, such party shall be 

required to provide (together with such notice) sufficient details of the notice 

attempted to be given by way of the relevant DTCC Notice Facility so as to allow the 

other party to identify the communication concerned. 

(c) DTCC Notice delivered successfully 

If the first Credit Event Notice or Notice to Exercise Movement Option (as applicable) 

to which the manual notice delivered pursuant to Mandatory Provision 4.5(a) (Manual 

Notice permitted if Delivery of Notice in DTCC uncertain) above related was actually 

delivered successfully, any subsequent Credit Event Notice or Notice to Exercise 

Movement Option delivered shall be deemed not to have been delivered.

5. Determination of Credit Events and Succession Events

Notwithstanding any provision to the contrary:

(a) the Calculation Agent shall not make any determination in respect of any matter 

which is or may be subject to resolution under Sections 3.5 (Successor Resolutions) or 

3.6 (Substitute Reference Obligation Resolutions) of the DC Rules; and

(b) neither party shall be entitled to deliver a Successor Notice or a Credit Event Notice 

(other than Credit Event Notices in relation to an M(M)R Restructuring in accordance 

with the terms of any Restructuring CCM Client Transaction (including the Mandatory 

Provisions) and, where applicable, the DTCC Rules).

6. Timings for the Delivery of Manual Notices 

The following provisions shall solely be applicable in respect of a CCM Client Transaction between a 

CCM Client Buyer and its CCM Seller/Matched Buyer:

6.1 Delivery of Manual Notices by CCM Client Buyer

For the purposes of the delivery by CCM Client Buyer of any notice in respect of a CCM Client 

Transaction which is permitted pursuant to the terms of such CCM Client Transaction 

(including the Mandatory Provisions) to be delivered manually (rather than via the relevant

DTCC Notice Facility), Section 1.38 (Requirements Regarding Notices) of the 2014 ISDA Credit 
Derivatives Definitions shall be amended so as to provide that, solely in respect of the final 

day on which such manual notice could validly be delivered pursuant to the terms of such 

CCM Client Transaction (including the Mandatory Provisions), any such notice shall be 

required to be delivered on or prior to 2:00 p.m. (Calculation Agent City time) in order to be 

effective.

A manual notice (including, without limitation, a Credit Event Notice or a Notice to Exercise 

Movement Option) delivered after 2:00 p.m. (Calculation Agent City time) on the final day on 

which such notice could validly be delivered pursuant to the terms of the relevant CCM Client 

Transaction (including the Mandatory Provisions) shall be deemed not to have been 

delivered. 

6.2 Onward Delivery of Certain Notices by CCM Seller/Matched Buyer to Matched Seller

Any Credit Event Notice, Notice to Exercise Movement Option, Notice of Physical Settlement, 

NOPS Amendment Notice, any notice given pursuant to Section 8.2 (Notice of Physical 

Settlement) of the 2014 ISDA Credit Derivatives Definitions in respect of any Asset or Asset 

Package, any notice given pursuant to Section 9.7 (Buy-in of Bonds Not Delivered) of the 2014 

ISDA Credit Derivatives Definitions or any notice given pursuant to Section 9.8 (Alternative 

Procedures Relating to Loans Not Delivered) of the 2014 ISDA Credit Derivatives Definitions 

which is permitted to be and is delivered manually by CCM Client Buyer to CCM 

Seller/Matched Buyer in respect of and pursuant to the terms of a CCM Client Transaction 

(including the Mandatory Provisions) shall not be effective unless and until CCM 

Seller/Matched Buyer effectively delivers the relevant equivalent notice to the relevant 

Matched Seller in respect of and pursuant to the terms of the corresponding Restructuring 

Cleared Transaction or Physically Settled Cleared Transaction, as applicable.

CCM Seller/Matched Buyer undertakesto deliver such a notice to the relevant Matched Seller 

within two hours of its receipt of the equivalent notice from CCM Client Buyer if such notice 

is received between 9:00 a.m. (Calculation Agent City time) and 4:00 p.m. (Calculation Agent 

City time) on a Calculation Agent City Business Day. Any such notice received by CCM 

Seller/Matched Buyer after 4:00 p.m. (Calculation Agent City time) on a Calculation Agent 

City Business Day shall be deemed to have been received at 9:00 a.m. (Calculation Agent City 

time) on the following Calculation Agent City Business Day. Any such notice received by CCM 

Seller/Matched Buyer before 9:00 a.m. (Calculation Agent City time) on a Calculation Agent 

City Business Day shall be deemed to have been received at 9:00 a.m. (Calculation Agent City 

time) on such Calculation Agent City Business Day. Any such notice delivered on a day that 

is not a Calculation Agent City Business Day shall be deemed to have been delivered at 9.00 

a.m. (Calculation Agent City time) on the following Calculation Agent City Business Day.

The following provision shall solely be applicable in respect of a CCM Client Transaction between a 

CCM Client Seller and its CCM Buyer/Matched Seller: 

6.3 Receipt of Certain Notices by CCM Buyer/Matched Seller deemed to be Receipt by CCM Client 

Seller

Any Credit Event Notice, Notice to Exercise Movement Option, Notice of Physical Settlement,

NOPS Amendment Notice, any notice given pursuant to Section 8.2 (Notice of Physical 

Settlement) of the 2014 ISDA Credit Derivatives Definitions in respect of any Asset or Asset 
Package, any notice given pursuant to Section 9.7 (Buy-in of Bonds Not Delivered) of the 2014 

ISDA Credit Derivatives Definitions or any notice given pursuant to Section 9.8 (Alternative 

Procedures Relating to Loans Not Delivered) of the 2014 ISDA Credit Derivatives Definitions 

which is permitted to be and is delivered manually by the relevant Matched Buyer to CCM 

Buyer/Matched Seller in respect of and pursuant to the terms of a Restructuring Cleared 

Transaction or Physically Settled Cleared Transaction (as applicable) relating to a CCM Client 

Transaction between such CCM Buyer/Matched Seller and CCM Client shall be deemed to 

constitute simultaneous delivery by CCM Buyer/Matched Seller to CCM Client Seller of such

notice in respect of such CCM Client Transaction. 

CCM Buyer/Matched Seller undertakes to deliver such a notice to CCM Client Seller within 

two hours of its receipt of the equivalent notice from the relevant Matched Buyer if such 

notice is received between 9:00 a.m. (Calculation Agent City time) and 4:00 p.m. (Calculation 

Agent City time) on a Calculation Agent City Business Day. Any such notice received by CCM 

Buyer/Matched Seller after 4:00 p.m. (Calculation Agent City time) on a Calculation Agent 

City Business Day shall be deemed to have been received at 9:00 a.m. (Calculation Agent City 

time) on the following Calculation Agent City Business Day. Any such notice received by CCM 

Buyer/Matched Seller before 9:00 a.m. (Calculation Agent City time) on a Calculation Agent 

City Business Day shall be deemed to have been received at 9:00 a.m. (Calculation Agent City 

time) on such Calculation Agent City Business Day. Any such notice delivered on a day that is 

not a Calculation Agent City Business Day shall be deemed to have been delivered at 9.00 

a.m. (Calculation Agent City time) on the following Calculation Agent City Business Day.

7. Physical Settlement

7.1 Fallback to Cash Settlement resulting from corresponding CCM Client Cleared Transaction

If a CCM notifies its CCM Client that the Physically Settled Cleared Transaction corresponding 

to their CCM Client Transaction is to be settled (in whole or in part) by Cash Settlement 

pursuant to Section 6 (Physical Settlement) of the CDS Clearing Supplement and such CCM 

Client Transaction has not already been settled by Physical Settlement, such CCM Client 

Transaction shall also be settled (in whole or in part, as applicable) by Cash Settlement and 

the Cash Settlement Amount and the Cash Settlement Date shall be the same as the Cash 

Settlement Amount and the Cash Settlement Date determined in respect of the 

corresponding Physically Settled Cleared Transaction.

In respect of the CCM Client Transaction between CCM Client Buyer and CCM Seller/Matched 

Buyer, if CCM Client Buyer has already Delivered the Deliverable Obligations to CCM 

Seller/Matched Buyer, CCM Seller/Matched Buyer shall redeliver equivalent Deliverable 

Obligations to CCM Client Buyer in whole (if Cash Settlement applies) or in part (if Partial Cash 

Settlement applies in which case CCM Seller/Matched Buyer shall retain a proportion of the 

Deliverable Obligations equal to the proportion of the Transaction to be settled by Physical 

Settlement).

7.2 Fallback to Cash Settlement in respect of Non-Deliverable Obligations

If, in respect of a CCM Client Transaction, Buyer is not permitted to Deliver one or more 

Deliverable Obligations (such Deliverable Obligations, the Non-Deliverable Obligations) 
specified in the relevant Notice of Physical Settlement or NOPS Amendment Notice to Seller 

because:

(a) the amount of such Deliverable Obligation is less than the relevant minimum 

denomination of such Deliverable Obligation; or

(b) Seller is not a permitted transferee under such Deliverable Obligation (and, in the 

case of this sub-section (ii), such circumstance would not constitute an illegality or 

impossibility outside the control of a relevant party for the purposes of Section 9.1 

(Partial Cash Settlement Due to Impossibility or Illegality) of the 2014 ISDA Credit 

Derivatives Definitions),

then it shall notify Seller accordingly describing in reasonable detail the relevant 

circumstances. 

With effect from such notification, such occurrence shall be treated, in relation to such CCM 

Client Transaction, as an illegality or impossibility outside the control of a relevant party for 

the purpose of Section 9.1 (Partial Cash Settlement Due to Impossibility or Illegality) of the 

2014 ISDA Credit Derivatives Definitions and "Cash Settlement" pursuant to the Partial Cash 

Settlement Terms shall be deemed to apply to such CCM Client Transaction with respect to 

the Non-Deliverable Obligations as though the Non-Deliverable Obligations were 

Undeliverable Obligations and the provisions set out in Mandatory Provision 7.3

(Consequences of Cash Settlement) below shall apply. 

7.3 Consequences of Cash Settlement

If the circumstances set out in either Section 9.1 (Partial Cash Settlement Due to Impossibility 

or Illegality) of the 2014 ISDA Credit Derivatives Definitions or Mandatory Provision 7.2

(Fallback to Cash Settlement in respect of Non-Deliverable Obligations) apply to a CCM Client 

Transaction, then:

(a) the Latest Permissible Physical Settlement Date in respect of such CCM Client 

Transaction will be deemed to be the first date on which the relevant Buyer or Seller 

effectively gave the relevant notice to the other pursuant to either Section 9.1 (Partial 

Cash Settlement Due to Impossibility or Illegality) of the 2014 ISDA Credit Derivatives 

Definitions or Mandatory Provision 7.2 (Fallback to Cash Settlement in respect of NonDeliverable Obligations) above, as applicable, (and for these purposes, Section 9.5 

(Latest Permissible Physical Settlement Date) of the 2014 ISDA Credit Derivatives 

Definitions shall not apply); and

(b) where sub-paragraph (ii) of Mandatory Provision 7.2 (Fallback to Cash Settlement in 

respect of Non-Deliverable Obligations) applies, Indicative Quotations shall not be 

applicable. 

7.4 Asset Package Delivery

If Asset Package Delivery is applicable in respect of a Physically Settled Cleared Transaction 

and an Asset to be delivered is a Non-Transferable Instrument or Non-Financial Instrument, 

then the Asset shall be deemed to be an amount of cash equal to the value determined by the 
CDSClear Product Committee (which, notwithstanding anything to the contrary shall be the 

"Calculation Agent" for the purposes of Section 8.15 (Asset Market Value) of the 2014 IDSA 

Credit Derivatives Definitions).

If a CCM notifies its CCM Client that Asset Package Delivery is applicable in respect of the 

Physically Settled Cleared Transaction corresponding to their CCM Client Transaction and such 

CCM Client Transaction has not already been settled by Physical Settlement and the relevant 

Asset Package comprises Assets in the form of cash in the Settlement Currency (whether 

pursuant to Section 8.12(b)(v) of the 2014 ISDA Credit Derivatives Definitions or otherwise) 

then Asset Package Delivery shall also apply in respect of such CCM Client Transaction and

(i) the Physical Settlement Amount in respect of such CCM Client Transaction shall be an 

amount equal to the Physical Settlement Amount minus the Asset Package Cash 

Settlement Amount determined in respect of the corresponding Physically Settled 

Cleared Transaction; and

(ii) the only Assets to be Delivered in respect of such CCM Client Transaction shall be such 

Assets as are Delivered in respect of the corresponding Physically Settled Cleared 

Transaction.

The following provisions shall solely be applicable in respect of a CCM Client Transaction between a 

CCM Client Buyer and its CCM Seller/Matched Buyer:

7.5 Delivery of Deliverable Obligations by CCM Client Buyer to CCM Seller/Matched Buyer

This Mandatory Provision 7.5 shall be applicable unless the CCM Client Buyer and CCM 

Seller/Matched Buyer agree that it shall not apply in respect of a specific CCM Client 

Transaction.

In respect of a CCM Client Transaction, the Delivery of any Deliverable Obligations (or if Asset 

Package Delivery is applicable, the Assets) to be Delivered by CCM Client Buyer to CCM 

Seller/Matched Buyer shall be deemed not to have occurred for the purposes of such CCM 

Client Transaction unless and until CCM Seller/Matched Buyer Delivers equivalent 

Deliverable Obligations or Assets to Matched Seller pursuant to the Physical Settlement of 

the corresponding Physically Settled Cleared Transaction.

Unless in respect of the corresponding Physically Settled Cleared Transactions: 

(a) Cash Settlement is applicable (in whole or in part); 

(b) a Buy-in Period is applicable or Buy-in Price has been determined pursuant to Section 

9.7 (Buy-in of Bonds Not Delivered) of the 2014 ISDA Credit Derivatives Definitions; 

(c) a Deemed Buy-in Period is applicable pursuant to Section 6.8(b)(i) of the CDS Clearing 

Supplement or Section 6.8(b)(ii) of the CDS Clearing Supplement is applicable; 

(d) Section 9.8(i) of the 2014 ISDA Credit Derivatives Definitions is applicable or Matched 

Seller has required Matched Buyer to Deliver a Bond or Loan pursuant to Section 

9.8(ii) of the 2014 ISDA Credit Derivatives Definitions; or
(e) Matched Seller has required Matched Buyer to Deliver a Deliverable Obligation 

pursuant to Section 9.9 (Alternative Procedures Relating to Assets Not Delivered) of 

the 2014 ISDA Credit Derivatives Definitions, 

(each such event, a "Non-delivery Event"), CCM Seller/Matched Buyer undertakes to Deliver 

the Deliverable Obligations (or such portion of the Deliverable Obligations not affected by a 

Non-delivery Event) or, if Asset Package Delivery is applicable, the Assets, to Matched Seller 

not later than the first Business Day after the day on which a trade in such Deliverable 

Obligation(s) or Assets would, if effected on the day on which CCM Seller/Matched Buyer 

received the Deliverable Obligations or Assets from CCM Client Buyer or on which the 

relevant Non-delivery Event ceased to apply, as applicable, (or if such day is not a Business 

Day, the following Business Day), be settled in accordance with then current market practice 

of such Deliverable Obligations or Assets, as the case may be, as determined by the 

Calculation Agent after consultation with the parties.

For the purposes of Article VIII (Terms relating to Physical Settlement) of the 2014 ISDA Credit 

Derivatives Definitions, the Physical Settlement Amount shall not be payable by CCM 

Seller/Matched Buyer to CCM Client Buyer in respect of the CCM Client Transaction until the 

Physical Settlement of the corresponding Physically Settled Cleared Transaction has 

occurred.

7.6 Buy-in of Bonds not Applicable

Section 9.7 (Buy-in of Bonds Not Delivered) of the 2014 ISDA Credit Derivatives Definitions 

shall not apply.

7.7 Buyer's Right to Deliver suspended during Buy-in Period

If CCM Seller/Matched Buyer notifies CCM Client Buyer in respect of a CCM Client Transaction 

that (i) it has received a Buy-in Notice from Matched Seller in respect of the Matched 

Contracts of the related Settlement Matched Pair or (ii) it has been notified by Matched Seller 

in respect of the Matched Contracts of the related Settlement Matched Pair pursuant to 

Section 6.8(b) (Deemed Buy-in of Bonds resulting from CCM Client Transaction of Matched 

Seller) of the CDS Clearing Supplement that such Matched Seller has received a Buy-in Notice 

from its CCM Client in respect of the CCM Client Transaction between such Matched Seller 

and its CCM Client, such notice from CCM Seller/Matched Buyer specifying:

i) the Buy-in Date; 

ii) the Relevant Bonds; and

iii) the Outstanding Principal Balance thereof sought to be bought-in,

then CCM Client Buyer's right to Deliver the specified Relevant Bonds shall be suspended until 

the fourth Business Day (inclusive) following such Buy-in Date.

7.8 Buy-in of Bonds in respect of Matched Contracts of the Settlement Matched Pair

Provided that Physical Settlement has not already occurred in respect of a CCM Client 

Transaction, if CCM Seller/Matched Buyer notifies CCM Client Buyer that a Buy-in Price has 
been (i) determined or (ii) deemed to be determined pursuant to Section 6.8(b) (Deemed Buyin of Bonds resulting from CCM Client Transaction of Matched Seller) of the CDS Clearing 

Supplement, in respect of Relevant Bonds for the purposes of the Matched Contracts of the 

related Settlement Matched Pair, then on the Buy-in Effective Date: 

i) CCM Client Buyer will be deemed to have Delivered to CCM Seller/Matched Buyer an 

Outstanding Principal Balance of the Deliverable Obligations equal to the Outstanding 

Principal Balance of the Deliverable Obligations Delivered or deemed to be Delivered 

by CCM Seller/Matched Buyer to Matched Seller in respect of the Matched Contracts; 

and

ii) the Physical Settlement Amount to be paid by CCM Seller/Matched Buyer to CCM 

Client Buyer in respect of this CCM Client Transaction shall be reduced (but not below 

zero) by an amount equal to the amount by which the Physical Settlement Amount 

to be paid to CCM Seller/Matched Buyer by Matched Seller in respect of the Matched 

Contracts is to be reduced.

CCM Seller/Matched Buyer shall notify CCM Client Buyer of such Outstanding Principal 

Balance of the Deliverable Obligations and such Physical Settlement Amount reduction for 

the purposes of i) and ii) above and of the Buy-in Effective Date.

If CCM Client Buyer has already Delivered Deliverable Obligations to CCM Seller/Matched 

Buyer, CCM Seller/Matched Buyer shall redeliver equivalent Deliverable Obligations to CCM 

Client Buyer and such equivalent Deliverable Obligations shall have an Outstanding Principal 

Balance equal to the Outstanding Principal Balance of the Deliverable Obligation(s) specified 

by CCM Seller/Matched Buyer in the above notice and deemed to have been Delivered by 

CCM Client Buyer to CCM Seller/Matched Buyer pursuant to this Mandatory Provision 7.8.

7.9 Alternative Procedures relating to Loans – Seller Right to Select

Section 9.8(ii) of the 2014 ISDA Credit Derivatives Definitions shall not apply.

7.10 Alternative Procedures relating to Loans – Seller designates alternative Loan or Bond

In respect of a CCM Client Transaction, CCM Seller/Matched Buyer shall notify CCM Client 

Buyer if it has purchased Bond(s) and/or Loan(s) pursuant to Section 9.8(ii) of the 2014 ISDA 

Credit Derivatives Definitions on the instructions of the Matched Seller in respect of the 

corresponding CCM Client Cleared Transaction. 

Following such notification, such Bond(s) and/or Loan(s) shall be deemed to have been 

Delivered by CCM Client Buyer to CCM Seller/Matched Buyer in Physical Settlement of the 

CCM Client Transaction and the Physical Settlement Amount payable by CCM Seller/Matched 

Buyer to CCM Client Buyer shall be reduced (but not below zero) by an amount equal to the 

price at which such Bond(s) and or Loan(s) were purchased.

CCM Seller/Matched Buyer shall provide CCM Client Buyer with details of such Bond(s) 

and/or Loan(s) and the related purchase price(s) in such notice.

If CCM Client Buyer has already Delivered Deliverable Obligations to CCM Seller/Matched 

Buyer, CCM Seller/Matched Buyer shall redeliver equivalent Deliverable Obligations to CCM 
Client Buyer and such equivalent Deliverable Obligations shall have an Outstanding Principal 

Balance equal to the Outstanding Principal Balance of the Bond(s) and/or Loan(s) specified 

by CCM Seller/Matched Buyer in the above notice and deemed to have been Delivered by 

CCM Client Buyer to CCM Seller/Matched Buyer pursuant to this Mandatory Provision 7.10. 

7.11 Alternative Procedures relating to Assets Not Delivered

Section 9.9 (Alternative Procedures Relating to Assets Not Delivered) of the 2014 ISDA Credit 

Derivatives Definitions shall not apply.

7.12 Alternative Procedures relating to Assets Not Delivered – Seller designates alternative 

Deliverable Obligation(s) 

In respect of a CCM Client Transaction, CCM Seller/Matched Buyer shall notify CCM Client 

Buyer if it has purchased one or more Deliverable Obligations pursuant to Section 9.9 

(Alternative Procedures Relating to Assets Not Delivered) of the 2014 ISDA Credit Derivatives 

on the instructions of the Matched Seller in respect of the corresponding CCM Client Cleared 

Transaction.

Following such notification, such Deliverable Obligations shall be deemed to have been 

Delivered by CCM Client Buyer to CCM Seller/Matched Buyer in Physical Settlement of the 

CCM Client Transaction and the Physical Settlement Amount payable by CCM Seller/Matched 

Buyer to CCM Client Buyer shall be reduced (but not below zero) by an amount equal to the 

price at which such Deliverable Obligations were purchased.

CCM Seller/Matched Buyer shall provide CCM Client Buyer with details of such Deliverable 

Obligation(s) and the related purchase price(s) in such notice.

If CCM Client Buyer has already Delivered Deliverable Obligations to CCM Seller/Matched 

Buyer, CCM Seller/Matched Buyer shall redeliver equivalent Deliverable Obligations to CCM 

Client Buyer and such equivalent Deliverable Obligations shall have an Outstanding Principal 

Balance equal to the Outstanding Principal Balance of the Deliverable Obligation(s) specified 

by CCM Seller/Matched Buyer in the above notice and deemed to have been Delivered by 

CCM Client Buyer to CCM Seller/Matched Buyer pursuant to this Mandatory Provision 7.12. 

 

The following provisions shall solely be applicable in respect of a CCM Client Transaction between 

CCM Client Seller and CCM Buyer/Matched Seller:

7.13 Delivery of Deliverable Obligations to CCM Client Seller

This Mandatory Provision 7.13 shall be applicable unless the CCM Client Seller and CCM 

Buyer/Matched Seller agree that it shall not apply in respect of a specific CCM Client 

Transaction.

Subject to the proviso below, in respect of a CCM Client Transaction, the Delivery of any 

Deliverable Obligations (or if Asset Package Delivery is applicable, the Assets) to be Delivered 

by CCM Buyer/Matched Seller to CCM Client Seller shall be deemed to have occurred for the 

purposes of such CCM Client Transaction upon receipt by CCM Buyer/Matched Seller of the 
Deliverable Obligations or Assets in respect of the Physical Settlement of the related 

Physically Settled Cleared Transaction; provided, however, that if the CCM Client Transaction 

is to be settled by Cash Settlement (in whole or in part) pursuant to Section 9.1 (Partial Cash 

Settlement Due to Impossibility or Illegality) of the 2014 ISDA Credit Derivatives Definitions 

or Mandatory Provision 7.2 (Fallback to Cash Settlement in respect of Non-Deliverable 

Obligations) then such portion of the CCM Client Transaction which is to be settled by Cash 

Settlement shall not be deemed to be settled until such Cash Settlement occurs. 

Provided that Cash Settlement is not applicable, CCM Buyer/Matched Seller undertakes to 

Deliver the Deliverable Obligations or Assets to CCM Client Seller not later than the first 

Business Day after the day on which a trade in such Deliverable Obligations or Assets would, 

if effected on the day on which CCM Buyer/Matched Seller received the Deliverable 

Obligations or Assets from Matched Buyer (or if such day is not a Business Day, the following 

Business Day), be settled in accordance with then current market practice of such Deliverable 

Obligations or Assets, as the case may be, as determined by the Calculation Agent after 

consultation with the parties.

7.14 Alternative Procedures relating to Loans – Seller Right to Select

Section 9.8(ii) of the 2014 ISDA Credit Derivatives Definitions shall not apply.

7.15 Alternative Procedures relating to Loans in respect of Matched Contracts

In respect of a CCM Client Transaction, if CCM Buyer/Matched Seller notifies CCM Client Seller 

that a Bond or Loan has been deemed specified in a NOPS Amendment Notice in respect of 

the Matched Contracts of the Settlement Matched Pair that corresponds to such CCM Client 

Transaction pursuant to (i) Sections 9.8(i) or (ii) of the 2014 ISDA Credit Derivatives Definitions 

or (ii) Section 6.9 (Alternative Procedures Relating to Loans Not Delivered – Buyer Right to 

Deliver) of the CDS Clearing Supplement, then for the purposes of the Matched Contracts of 

the related Settlement Matched Pair such Bond or Loan shall be deemed to have been 

specified in a NOPS Amendment Notice in respect of such CCM Client Transaction and such 

NOPS Amendment Notice will be effective notwithstanding the fact that it is deemed 

specified after the Physical Settlement Date.

7.16 Alternative Procedures relating to Assets Not Delivered

Section 9.9 (Alternative Procedures relating to Assets Not Delivered) of the 2014 ISDA Credit 

Derivatives Definitions shall not apply.

7.17 Alternative Procedures relating to Assets Not Delivered

In respect of a CCM Client Transaction, if CCM Buyer / Matched Seller notifies CCM Client 

Seller that a Deliverable Obligation has been deemed specified in a NOPS Amendment Notice 

in respect of the Matched Contracts of the Settlement Pair that corresponds to such CCM 

Client Transaction pursuant to Section 9.9 (Alternative Procedures Relating to Assets Not 

Delivered) of the 2014 ISDA Credit Derivatives Definitions then for the purposes of the 

Matched Contracts of the related Settlement Matched Pair such Deliverable Obligation shall 

be deemed to have been specified in a NOPS Amendment Notice in respect of such CCM 
Client Transaction and such NOPS Amendment Notice will be effective notwithstanding the 

fact that it is deemed specified after the Physical Settlement Date.

8. Self Referencing Transactions

8.1 Section 11.4 (Merger of Reference Entity and Seller) of the 2014 ISDA Credit Derivatives 

Definitions 

Section 11.4 (Merger of Reference Entity and Seller) of the 2014 ISDA Credit Derivatives 

Definitions shall not apply.

8.2 Notification of Self Referencing Transactions

In respect of any Single Name CCM Client Transaction, the CCM Client shall, unless prohibited 

from so doing by applicable law, notify the CCM as soon as reasonably practicable if:

i) the CCM Client is or consolidates or amalgamates with, or merges into, or transfers 

all or substantially all of its assets to, the Reference Entity in relation to such Single 

Name CCM Client Transaction or enters into any agreement in respect of any of the 

foregoing;

ii) the CCM Client and the Reference Entity in relation to such Single Name CCM Client 

Transaction are or become Affiliates; or

iii) in respect of a Restructuring CCM Client Transaction, the CCM Client is or becomes 

the Reference Entity in relation to such Restructuring CCM Client Transaction as a 

result of the occurrence of the relevant M(M)R Restructuring.

8.3 Termination of Self Referencing Transactions

A CCM Client Transaction shall be terminated (unless it has already been terminated) at the 

same time as the termination of the corresponding Single Name Cleared Transaction 

pursuant to Section 9.2 (Occurrence of Client Self Referencing Transactions) of the CDS 

Clearing Supplement and by reference to the price at which such Single Name Cleared 

Transaction is terminated and an amount will be payable:

(a) if the CCM receives an amount from LCH SA in relation to such Single Name Cleared 

Transaction pursuant to Section 9.2 (Occurrence of Client Self Referencing Transactions), 

by the CCM to the CCM Client equal to such amount and on the Business Day following 

receipt by the CCM of such amount from LCH SA; and 

(b) if the CCM is obliged to pay an amount to LCH SA in relation to such Single Name Cleared 

Transaction pursuant to Section 9.2 (Occurrence of Client Self Referencing Transactions ), 

by the CCM Client to the CCM equal to such amount and on the later of (I) the Business 

Day prior to the day on which the CCM is obliged to pay such amount to LCH SA and (II) 

the Business Day following the Business Day on which the CCM gives notices to the CCM 

Client of the relevant amount.
8.4 Costs of Terminating Self Referencing Transactions

Without prejudice to any other indemnity agreed between the CCM and the CCM Client in 

relation to CCM Client Transactions, the CCM Client agrees to indemnify and hold harmless 

the CCM from and against all costs and expenses that the CCM is obliged to bear pursuant to 

Section 9.2 (Occurrence of Client Self Referencing Transactions) of the CDS Clearing 

Supplement.

8.5 Compression of Self Referencing Transactions

Where the CCM acts as Matched Buyer and Matched Seller in respect of fungible Single Name 

Cleared Transactions that have a corresponding CCM Client Transaction in respect of which 

CCM Client has given notice to CCM pursuant to Mandatory Provision 8.2 (Notification of Self 

Referencing Transactions) and the relevant Single Name Cleared Transactions are 

compressed pursuant to Section 9.2 (Occurrence of Client Self Referencing Transactions) of 

the CDS Clearing Supplement, the CCM Client will be deemed to have submitted to CCM a 

request to compress the corresponding CCM Client Transactions.

9. Calculation Agent

9.1 Appointment of Calculation Agent

The Calculation Agent in respect of any CCM Client Transaction shall be the CCM. 

9.2 Calculations and Determinations of Calculation Agent

In the event that the Calculation Agent is entitled or required to make any calculation or 

determination in respect of a CCM Client Transaction in respect of a matter that has already 

been or will be determined in respect of and pursuant to the terms of the corresponding CCM 

Client Cleared Transaction, the Calculation Agent in respect of the CCM Client Transaction 

shall be obliged to make the same calculation or determination in respect of such CCM Client 

Transaction as the determination in respect of the corresponding CCM Client Cleared 

Transaction (including, without limitation, any determination of any Cash Settlement Amount 

payable in respect of the CCM Client Transaction). 

10. Amendments

The Mandatory Provisions may be amended from time to time pursuant to Section 11

(Amendments) of the CDS Clearing Supplement. The parties agree that any amendments 

made to the Mandatory Provisions in accordance with Section 11 (Amendments) of the CDS 

Clearing Supplement shall be deemed to apply automatically to the CCM Client Transaction(s) 

with effect from the date of such amendment to the Mandatory Provisions.
File No. SR-LCH SA-2022-004

Page 227 of 429

LCH SA © 2021 Published on 30 July 2021[●]

PART C

CDS CLEARING SUPPLEMENT

FOR CREDIT INDEX SWAPTIONS 

CONTENTS

SECTION PAGE

1. GENERAL PROVISIONS ...................................................................................................................... 230

2. TERMS OF CLEARED TRANSACTIONS ........................................................................................... 241

3. PAYMENTS............................................................................................................................................ 245

4. CREDIT EVENTS AND SUCCESSION EVENTS................................................................................ 246

5. RESTRUCTURING ................................................................................................................................ 247

6. EXERCISE MATCHED PAIRS ............................................................................................................. 253

7. SETTLEMENT........................................................................................................................................ 254

8. DELIVERY OF NOTICES...................................................................................................................... 266

9. MATCHED PAIR DESIGNATIONS...................................................................................................... 266

10. MANDATORY PROVISIONS FOR CCM CLIENT TRANSACTIONS .............................................. 271

11. AMENDMENTS ..................................................................................................................................... 272

12. FORMS OF NOTICES............................................................................................................................ 272

13. EXCLUSION OF LIABILITY ................................................................................................................ 272

14. DISPUTE RESOLUTION ....................................................................................................................... 272

15. GOVERNING LAW................................................................................................................................ 273
LCH SA © 2021 230 Published on 30 July 2021[●]

1. GENERAL PROVISIONS

1.1 Incorporation of Defined Terms 

Capitalised terms used in this CDS Clearing Supplement and not otherwise defined herein 

shall have the meaning given pursuant to the Index Swaption Cleared Transaction 

Confirmation, the 2014 ISDA Credit Derivatives Definitions, the 2006 Definitions or the CDS 

Clearing Rule Book, as applicable. In the case of any such terms defined in the CDS Clearing 

Rule Book, such terms shall be interpreted in accordance with the governing law specified 

therefor in the CDS Clearing Rule Book. 

1.2 Terms defined in the CDS Clearing Supplement

For the purposes of the CDS Clearing Documentation, the following capitalised terms shall, 

unless otherwise specified, have the respective meanings set out below: 

2006 Definitions: The 2006 ISDA Definitions published by ISDA.

2014 ISDA Credit Derivatives Definitions: The 2014 ISDA Credit Derivatives Definitions 

published by ISDA.

Abandon: The Abandonment of an Exercise Cleared Transaction.

Abandonment: The delivery of a valid Abandonment Notice by Swaption Buyer (or deemed 

delivery pursuant to Section 6.3 (Exercise and Abandonment by way of EEP) or Section 6.4

(Delegation by Clearing Members to Clients) below) in respect of the Exercise Cleared 

Transactions of an Exercise Matched Pair.

Abandonment Notice: The notice of abandonment given by Swaption Buyer to Swaption 

Seller in accordance with Section 6.6 (Abandonment of Exercise Cleared Transactions).

CCM Client Cleared Transaction: A Cleared Transaction between a CCM and LCH SA 

registered in a CCM Client Trade Account of a CCM.

CCM Client Communications Failure Event: As set out at Mandatory Provision 5.7(b) (CCM 

Client Communications Failure Event). 

CCM Client Transaction: A Transaction between a CCM and a CCM Client which is on the 

same economic terms as its corresponding CCM Client Cleared Transaction.

CCM Client Transaction Documents: The documentation entered into by a CCM and its CCM 

Client to document a CCM Client Transaction.

CDS Buyer: The Fixed Rate Payer under the relevant Underlying Index Transaction.

CDSClear Preferred Reference Obligation: This term shall have the meaning set out in Section 

4 of the Procedures.

CDSClear Product Committee: A committee composed of representatives of LCH SA and 

representatives of Clearing Members for the purposes of carrying-out the tasks apportioned 

to it by the CDS Clearing Documentation as further described in the terms of reference for 
LCH SA © 2021 231 Published on 30 July 2021[●]

such committee, agreed in consultation with the Clearing Members and as may be amended 

from time to time in consultation with the Clearing Members. 

CDS Clearing Rule Book: The document entitled "CDS Clearing Rule Book" published by LCH 

SA, as amended from time to time.

CDS Seller: The Floating Rate Payer under the relevant Underlying Index Transaction.

CDX Swaption Standard Terms Supplement: The CDX Untranched Transactions Swaption 

Standard Terms Supplement as published on 22 September 2014 by Markit North America, 

Inc. and as amended by this CDS Clearing Supplement.

CEN Triggering Period: In relation to any M(M)R Restructuring, the period during which the 

parties to the Swaption Restructuring Cleared Transaction of a Swaption Restructuring 

Matched Pair may deliver a Credit Event Notice in relation to the relevant M(M)R 

Restructuring, such period starting at 9:00 a.m. on and including the earlier to occur of:

(a) the Relevant City Business Day following publication of the related Final List; and

(b) the fifth calendar day following the No Auction Announcement Date,

and ending on and including the Exercise Cut-off Date applicable to CDS Buyer or CDS Seller 

(as applicable). 

Clearing Member Communications Failure Event: As set out at 6.10 (Clearing Member 

Communications Failure Event).

Clearing Member Notice: A Swaption Clearing Member Notice or a Swaption Restructuring 

Clearing Member Notice.

Clearing Member Portal Account: The account of a Clearing Member established in the LCH 

Portal for, amongst other things, the purposes of the Exercise and Abandonment of Exercise 

Cleared Transactions.

Client Portal Account: The account of a Client established in the LCH Portal for the purposes 

of, amongst other things, the Exercise and Abandonment of Exercise Cleared Transactions.

Client Portal Account Number: The unique account number assigned by LCH SA to a Client 

Portal Account.

Component Transaction: As defined in the Index Cleared Transaction Confirmation.

Compression Cut-off Date: The last date on which a Clearing Member may submit a request 

for an Index Swaption Cleared Transaction to be compressed pursuant to the ad hoc 

compression methodology and on which a daily automatic compression cycle will be run by 

LCH SA, in each case in accordance with Chapter 3 (Compression) of Title III (Clearing 

Operations) of the CDS Clearing Rule Book and Section 5 of the Procedures, being:

(a) the date falling one Transaction Business Day prior to the Novation Cut-off Date in 

respect of the relevant Eligible Underlying Index Transaction Version; or
LCH SA © 2021 232 Published on 30 July 2021[●]

(b) following the occurrence of DC Credit Event Announcement of an M(M)R 

Restructuring (and prior to the creation of Swaption Restructuring Matched Pairs 

pursuant to Section 5.1 (Creation and Notification of Swaption Restructuring Matched 

Pairs)), the earlier of (A) the date of publication of the relevant Initial List (as defined 

in the DC Rules), (B) the date falling two Transaction Business Days prior to the 

relevant date on which the related SRMP Notification Deadline falls and (C) such other 

date falling between the dates in (A) and (B), as determined by LCH SA in consultation 

with the CDSClear Product Committee and notified to the relevant Clearing Members 

prior to such date.

For the avoidance of doubt, where a Clearing Member has specified automatic compression 

on a weekly basis then the last such weekly automatic compression cycle performed by LCH 

SA will be performed on the Clearing Day falling on the Thursday on or before the relevant 

Compression Cut-off Date.

DC Restructuring Announcement Date: The date on which the DC Credit Event 

Announcement of an M(M)R Restructuring is made, provided that where such DC Credit Event 

Announcement is made after 6.30 p.m. on a Transaction Business Day or on a day which is 

not a Transaction Business Day, the DC Restructuring Announcement Date will be the first 

following Transaction Business Day.

Dispute: This term shall have the meaning set out in the CDS Dispute Resolution Protocol.

DTCC Rules: The "Operating Procedures", as published by DTCC and as amended from time 

to time.

EEP Controls: As set out at Section 6.3 (Exercise and Abandonment by way of EEP).

EEP Failure Event: As set out at Section 6.5 (Notification of EEP Failure and Resolution). 

EEP Failure Event Time: As set out at Section 6.5 (Notification of EEP Failure and Resolution).

EEP Resolution Time: As set out at Section 6.5 (Notification of EEP Failure and Resolution).

Electronic Exercise Platform or EEP: A platform made available by LCH SA for the Exercise 

and Abandonment of Exercise Cleared Transactions through the submission of Option 

Intents.

Eligible Underlying Index Transaction Version: This term shall have the meaning set out in 

Section 4 of the Procedures.

EMP Creation Period: The period from (and including) the final Transaction Business Day of 

the calendar week immediately preceding the week in which the Expiration Date falls to (but 

excluding) the Transaction Business Day immediately preceding the Expiration Date.

EMP Notification Deadline: In respect of a notification by LCH SA to the relevant Clearing 

Members in relation to Exercise Matched Pairs, 10.00 p.m. on the Transaction Business Day 

immediately prior to the relevant Expiration Date.
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Exercise: The delivery of a valid Exercise Notice by Swaption Buyer (or deemed delivery 

pursuant to Section 6.3 (Exercise and Abandonment by way of EEP) or Section 6.4 (Delegation 

by Clearing Members to Clients) below) in respect of the Exercise Cleared Transactions of an 

Exercise Matched Pair.

Exercise Cleared Transaction: Each Index Swaption Cleared Transaction (including each 

Swaption Restructuring Cleared Transaction, as applicable) forming part of an Exercise 

Matched Pair pursuant to Section 6.2 (Creation of Exercise Cleared Transactions).

Exercise Delegation Beneficiary: The Client of a Clearing Member designated by such 

Clearing Member pursuant to Section 6.4 (Delegation by Clearing Members to Clients) below 

as being entitled to Exercise and Abandon Exercise Cleared Transactions on such Clearing 

Member's behalf. 

Exercise Matched Pair: A pairing comprised of a Matched Buyer and a Matched Seller in 

respect of Exercise Cleared Transactions created by LCH SA under Section 6.1 (Creation and 

Notification of Exercise Matched Pairs) for the purposes of the exercise (or non-exercise) by 

Swaption Buyer of the relevant Exercise Cleared Transactions.

Exercise Matched Pair Amount: In respect of an Exercise Matched Pair, the amount of the 

Swaption Notional Amount(s) of the relevant Index Swaption Cleared Transactions (or 

Swaption Restructuring Cleared Transactions) from which the Exercise Matched Pair (and the 

Exercise Cleared Transactions of such Exercise Matched Pair) are created which is allocated 

by LCH SA to such Exercise Matched Pair under Section 6.1 (Creation and Notification of 

Exercise Matched Pairs).

Exercise Notice: The notice of exercise (in whole or in part) given by Swaption Buyer to 

Swaption Seller in accordance with Section 13.2 (Procedure for Exercise) of the 2006 

Definitions.

Exercise Percentage: The amount (expressed as a percentage) of the Swaption Notional 

Amount of an Exercise Cleared Transaction that is exercised on the Expiration Date of an 

Exercise Cleared Transaction.

First Novation Date: In respect of:

(a) an Original Transaction of a Swaption Type for which a Novation Cut-off Date has 

previously occurred as a result of a DC Credit Event Announcement of an M(M)R 

Restructuring which is applicable to a Component Transaction of the relevant 

Underlying Index Transaction for such Swaption Type, the Transaction Business Day 

following the latest possible Exercise Cut-off Date for the relevant M(M)R 

Restructuring or such other date on which LCH SA determines in consultation with the 

CDSClear Product Committee that LCH SA will begin to again accept Original 

Transactions in respect of which the Underlying Index Transaction references the 

relevant Eligible Underlying Index Transaction Version for clearing pursuant to the CDS 

Clearing Documentation; and 

(b) an Original Transaction (other than in the circumstances set-out in (a) above), the first 

date on which LCH SA will accept Original Transactions in respect of which the 
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Underlying Index Transaction references the relevant Eligible Underlying Index 

Transaction Version for clearing pursuant to the CDS Clearing Documentation.

First Restructuring: As set out at Section 5.1 (Creation and Notification of Swaption 

Restructuring Matched Pairs).

Force Submission: This term shall have the meaning set out in Section 5 of the Procedures.

Index Cleared Transaction: As set out in Part B of the CDS Clearing Supplement.

Index Cleared Transaction Confirmation: As set out in Part B of the CDS Clearing Supplement.

Index Swaption Cleared Transaction: A Cleared Transaction, the terms of which are as 

evidenced by an Index Swaption Cleared Transaction Confirmation, which gives Swaption 

Buyer the right to enter into a specified Underlying Index Transaction with Swaption Seller.

Index Swaption Cleared Transaction Confirmation: For:

(a) any Index Swaption Cleared Transaction in respect of which the Underlying Index 

Transaction references a Markit iTraxx® Europe Index Series, the form of confirmation 

which incorporates the iTraxx® Swaption Standard Terms Supplement; and

(b) any Index Swaption Cleared Transaction in respect of which the Underlying Index 

Transaction references a Markit CDXTM Index Series, the form of confirmation which 

incorporates the CDX Swaption Standard Terms Supplement,

as completed by reference to the relevant Transaction Data (or, in each case, such other form 

of confirmation as may be adopted in respect of any Swaption Type in accordance with 

Section 1.2.2 (Modification) of the CDS Clearing Rule Book).

ISDA: The International Swaps and Derivatives Association, Inc. and any successor thereto.

iTraxx® Swaption Standard Terms Supplement: The iTraxx® Europe Untranched Transactions 

Swaption Standard Terms Supplement, as published on 20 March 2017 by Markit Indices 

Limited and as amended by this CDS Clearing Supplement.

LCH Portal: As set out in Section 5 of the Procedures.

Mandatory Provisions: As set-out in Appendix VIII (CCM Client Transaction Requirements).

Matched Buyer: A Swaption Buyer comprised in a Swaption Restructuring Matched Pair or 

an Exercise Matched Pair (as applicable).

Matched Buyer Contract: A Swaption Restructuring Cleared Transaction or an Exercise 

Cleared Transaction (as applicable) between a Matched Buyer and LCH SA which is the subject 

of a Matched Pair having the Swaption Restructuring Matched Pair Amount or the Exercise 

Matched Pair Amount, as the case may be, relating to that Matched Pair.

Matched Contract: A Matched Seller Contract or a Matched Buyer Contract, as applicable.
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Matched Pair: An Exercise Matched Pair or a Swaption Restructuring Matched Pair (as 

applicable).

Matched Pair Amount: An Exercise Matched Pair Amount or a Swaption Restructuring 

Matched Pair Amount (as applicable).

Matched Seller: A Swaption Seller comprised in a Swaption Restructuring Matched Pair or an 

Exercise Matched Pair (as applicable). 

Matched Seller Contract: A Swaption Restructuring Cleared Transaction or an Exercise 

Cleared Transaction between a Matched Seller and LCH SA which is the subject of a Matched 

Pair having the Swaption Restructuring Matched Pair Amount or the Exercise Matched Pair 

Amount, as the case may be, relating to that Matched Pair.

NEMO Triggering Period: The period starting at 9:00 a.m. on the date that is the Movement 

Option Cut-off Date for the relevant M(M)R Restructuring and ending at the last time for 

delivery of a valid Notice to Exercise Movement Option under the terms of the 2014 ISDA 

Credit Derivatives Definitions.

Notification Deadline: In respect of an Exercise Matched Pair, the EMP Notification Deadline 

and in respect of a Swaption Restructuring Matched Pair, the SRMP Notification Deadline.

Novation Cut-off Date: The date with effect from which LCH SA will no longer accept for 

novation Original Transactions in respect of which the Underlying Index Transaction 

references a particular Eligible Underlying Index Transaction Version, being:

(a) following the occurrence of a DC Credit Event Announcement in respect of an M(M)R 

Restructuring which would be applicable to a Component Transaction of such 

Underlying Index Transaction, the earlier of: 

(i) a date determined by LCH SA in consultation with the CDSClear Product 

Committee, which shall not be earlier than the DC Restructuring 

Announcement Date; and

(ii) the calendar day immediately following the No Auction Announcement Date;

(b) following the occurrence of a DC Credit Event Announcement in respect of a Credit 

Event (other than an M(M)R Restructuring) which would be applicable to a 

Component Transaction of such Underlying Index Transaction, the calendar day 

following the DC Announcement Coverage Cut-off Date;

(c) the date falling 1 (one) Transaction Business Day prior to the Expiration Date for the 

Original Transaction; or

(d) otherwise, as determined by LCH SA in consultation with the CDSClear Product 

Committee. 

Option Intent: The election of Matched Buyer (or its Exercise Delegation Beneficiary if 

applicable) in the EEP to Exercise (in whole or in part) or Abandon an Exercise Cleared 

Transaction. 
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Protected Exercise Matched Pair Report: As set out in Section 6.1 (Creation and Notification 

of Exercise Matched Pairs).

SRMP Notification Deadline: In respect of a notification by LCH SA to the relevant Clearing 

Members in relation to Swaption Restructuring Matched Pairs, 10.00 a.m. on the Relevant 

City Business Day immediately prior to the first day of the CEN Triggering Period provided 

that the SRMP Notification Deadline shall in no event fall prior to the second Relevant City 

Business Day following the occurrence of the related DC Credit Event Announcement.

SRMP Triggerable Amount: An amount equal to the Swaption Notional Amount of the 

Swaption Restructuring Cleared Transactions of a Swaption Restructuring Matched Pair 

multiplied by the 'Reference Entity Weighting' (under the Underlying Index Transaction 

referenced by such Swaption Restructuring Cleared Transaction) of the Reference Entity in 

respect of which an M(M)R Restructuring has occurred.

Submission Deadline: In respect of:

(a) an Index Swaption Cleared Transaction in respect of which the Underlying Index 

Transaction references a Markit iTraxx® Europe Index Series: the Latest Exercice Time 

as defined in the iTraxx® Swaption Standard Terms Supplement; or

(b) an Index Swaption Cleared Transaction in respect of which the Underlying Index 

Transaction references a Markit CDXTM Index Series: the Expiration Time as defined in 

the CDX Swaption Standard Terms Supplement.

Submission Time: As set out at Section 6.3 (Exercise and Abandonment by way of EEP). 

Subsequent Restructuring: As set out at Section 5.1 (Creation and Notification of Swaption 

Restructuring Matched Pairs).

Succession Event: An entity (or entities) constitute a successor or successors in respect of a 

Reference Entity as determined pursuant to Section 2.2 (Provisions for Determining a 

Successor) of the 2014 ISDA Credit Derivatives Definitions.

Successor Resolution: This term shall have the meaning set out in the DC Rules.

Swaption CCM Client Notice: As set out at Mandatory Provision 5.5 (Duty to Deliver Swaption 

CCM Client Notice).

Swaption CCM Client Notice Deadline: As set out at Mandatory Provision 5.5 (Duty to Deliver 

Swaption CCM Client Notice).

Swaption Clearing Member Notice: As set out in Section 6.5(c) (Duty to deliver Swaption

Clearing Member Notices).

Swaption Clearing Member Notice Deadline: As set out in Section 6.5(c) (Duty to deliver 

Swaption Clearing Member Notices).

Swaption Notice: An Exercise Notice or Abandonment Notice.
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Swaption Restructuring Cleared Transaction: Each Index Swaption Cleared Transaction 

forming part of a Swaption Restructuring Matched Pair pursuant to Section 5.2 (Creation of 

Swaption Restructuring Cleared Transactions).

Swaption Restructuring Clearing Member Notice: As set out at Section 5.7 (Swaption 

Restructuring Clearing Member Notices).

Swaption Restructuring Clearing Member Notice Deadline: As set out in Section 5.7 

(Swaption Restructuring Clearing Member Notices).

Swaption Restructuring Matched Pair: A pairing comprised of a Matched Buyer and a 

Matched Seller in respect of Swaption Restructuring Cleared Transactions created by LCH SA 

under Section 5.1 (Creation and Notification of Swaption Restructuring Matched Pairs) or 

Section 5.4 (Partial triggering of a Swaption Restructuring Cleared Transaction) for the 

purposes of the delivery of Credit Event Notices and Notices to Exercise Movement Option 

as applicable.

Swaption Restructuring Matched Pair Amount: In respect of a Swaption Restructuring 

Matched Pair, the amount of the Swaption Notional Amount(s) of the relevant Index 

Swaption Cleared Transactions from which the Swaption Restructuring Matched Pair (and the 

Swaption Restructuring Cleared Transactions of such Swaption Restructuring Matched Pair) 

are created which is allocated by LCH SA to such Swaption Restructuring Matched Pair under 

Section 5.1 (Creation and Notification of Swaption Restructuring Matched Pairs) or Section 

5.4 (Partial triggering of a Swaption Restructuring Cleared Transaction). 

Swaption Type: A class of Index Swaption Cleared Transactions that are identical as to their 

terms (including, without limitation, as to the terms of the Underlying Index Transaction to 

which such Index Swaption Cleared Transactions relate), except that they may differ as to: 

(a) the Swaption Trade Date;

(b) the Swaption Notional Amount;

(c) the Premium; 

(d) the Premium Payment Date; and 

(e) the identity of the relevant Swaption Buyer and Swaption Seller. 

Transaction Business Day: A day determined as follows:

(a) in respect of any date to be determined or time period to be determined which is 

referenced in the 2006 Definitions: 

(i) a day that would be a 'Business Day' (where this would be the applicable term 

under the 2006 Definitions for the purpose of the determination of such date 

or time period); or 
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(ii) a day that would be an 'Exercise Business Day' (where this would be the 

applicable term under the 2006 Definitions for the purpose of the 

determination of such date or time period), 

pursuant to the business day elections made in the Index Swaption Cleared

Transaction Confirmation; or

(b) in respect of any date to be determined or time period to be determined which is 

referenced in the 2014 ISDA Credit Derivatives Definitions: 

(i) a day that would be a 'Business Day' (where this would be the applicable term 

under the 2014 ISDA Credit Derivatives Definitions for the purpose of the 

determination of such date or time period); or 

(ii) a day that would be a 'Calculation Agent City Business Day', 'Grace Period 

Business Day' or 'Relevant City Business Day', as applicable (where this would 

be the applicable term under the 2014 ISDA Credit Derivatives Definitions for 

the purpose of the determination of such date or time period); or 

(c) for any other purpose, a day that would be a 'Business Day' as defined in the CDS 

Clearing Rule Book.

Transaction Data: In respect of an Original Transaction to be novated pursuant to Title III 

(Clearing Operations) of the CDS Clearing Rule Book and cleared by LCH SA as an Index 

Swaption Cleared Transaction, the data provided by an Approved Trade Source System to LCH 

SA for such purposes, which includes, without limitation:

(a) in respect of the Index Swaption Cleared Transaction: 

(i) the Swaption Trade Date;

(ii) the Swaption Seller;

(iii) the Swaption Buyer;

(iv) the Option Type (if applicable); 

(v) the Quoting Style (if applicable);

(vi) the Premium;

(vii) the Strike Price; and

(viii) the Expiration Date; and

(b) in respect of the Underlying Index Transaction to which such Index Swaption Cleared 

Transaction relates: 

(i) the relevant index, including details of the index name, series and version, the 

annex date; 
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(ii) the Original Notional Amount and the currency of the Original Notional 

Amount; 

(iii) the Scheduled Termination Date;

(iv) the Floating Rate Payer;

(v) the Fixed Rate Payer; and

(vi) the Fixed Rate Payer Payment Dates.

Triggered Amount: This term shall have the meaning given to the term "Exercise Amount" in 

the 2014 ISDA Credit Derivatives Definitions.

Underlying Index Transaction: means, in respect of an Index Swaption, the Index Cleared 

Transaction which Swaption Buyer has the right to enter into with Swaption Seller, the terms 

of which are specified in the Index Swaption Cleared Transaction Confirmation and which 

references a portfolio of Reference Entities specified in a credit default swap index. 

1.3 Inconsistency

To the extent of any conflict between: 

(a) any definition or provision contained in Appendix 1 (CDS Default Management 

Process) of the CDS Clearing Rule Book; 

(b) the remaining sections of the CDS Clearing Rule Book; 

(c) the CDS Admission Agreement; 

(d) this CDS Clearing Supplement; 

(e) an Index Swaption Cleared Transaction Confirmation; 

(f) the Procedures; or 

(g) any Clearing Notices, 

the first referenced document shall prevail except in relation to determining the existence 

and amount of any payment and delivery obligations under any Cleared Transactions, in

respect of which this CDS Clearing Supplement or the Index Swaption Cleared Transaction 

Confirmation, as applicable, shall prevail to the extent permitted by law.

1.4 Timing

Pursuant to Article 1.2.8 (Time reference) of the CDS Clearing Rule Book, any reference to a 

time of day herein shall be deemed to be a reference to Central European Time unless 

otherwise provided herein.
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1.5 Third Party Rights

Unless otherwise provided in this CDS Clearing Supplement or in the CDS Clearing Rulebook, 

a person who is not a party to a Cleared Transaction does not have any right under the 

Contracts (Rights of Third Parties) Act 1999 to enforce any provision of such Cleared 

Transaction or this CDS Clearing Supplement as it relates to such Cleared Transaction.

1.6 Recording of Conversations

Each of LCH SA and each Clearing Member consents to the recording of telephone 

conversations between the trading, marketing and other relevant personnel of the parties in 

connection with any Cleared Transaction and agrees to obtain any necessary consent of, and 

give any necessary notice of such recording to, its relevant personnel and agrees, to the 

extent permitted by applicable law, that such recordings may be submitted as evidence in 

any related court or arbitral proceedings. 

1.7 Application to FCM/BD Clearing Members

(a) Upon the taking of any action pursuant to this CDS Clearing Supplement by an 

FCM/BD Clearing Member in respect of an FCM/BD Cleared Transaction entered into 

as agent for the account of an FCM/BD Client (as described in FCM/BD CDS Clearing 

Regulation 1(c)), such FCM/BD Clearing Member shall be deemed to represent to LCH 

SA that it has the power and authority to, and has been duly authorised to, take such 

action for the account of such FCM/BD Client.

(b) For purposes of this CDS Clearing Supplement, with regard to any Cleared Transaction 

entered into by an FCM/BD Clearing Member acting as agent for the account of an 

FCM/BD Client (as described in FCM/BD CDS Clearing Regulation 1(c)):

(i) references herein to “Swaption Buyer”, “Swaption Seller”, "CDS Buyer" or "CDS 

Seller", as the case may be, shall be understood to be references to such 

FCM/BD Client (which shall not, for the avoidance of doubt, prejudice LCH SA’s 

right to deal solely with the FCM/BD Clearing Member pursuant to Article 

6.1.1.3(vi) of the CDS Clearing Rule Book); and

(ii) references herein to: (1) a Clearing Member entering into a Cleared Transaction 

with LCH SA; and (2) a Clearing Member forming part of a Matched Pair, shall 

each be understood as such FCM/BD Clearing Member acting as agent for the 

account of such FCM/BD Client (as described in FCM/BD CDS Clearing 

Regulation 1(c)).

(c) Notwithstanding and without prejudice to sub-paragraph (b)(i) above, an FCM/BD

Clearing Member (acting as agent for the account of its FCM/BD Client) shall 

designate such FCM/BD Client to Exercise and Abandon Exercise Cleared Transactions 

on its behalf as its Exercise Delegation Beneficiary (including, without limitation, by 

means of submitting Option Intents in the EEP) in accordance with Section 6.4

(Delegation by Clearing Members to Clients) of this CDS Clearing Supplement.
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2. TERMS OF CLEARED TRANSACTIONS 

2.1 General Terms of Cleared Transactions 

(a) Terms of Index Swaption Cleared Transactions, Swaption Restructuring Cleared 

Transactions and Exercise Cleared Transactions

Upon novation of an Original Transaction which is an Index Swaption at the Novation 

Time in accordance with Title III (Clearing Operations) of the CDS Clearing Rule Book 

or the creation of a Swaption Restructuring Cleared Transaction in accordance with 

Section 5.2 (Creation of Swaption Restructuring Cleared Transactions) or an Exercise 

Cleared Transaction in accordance with Section 6.2 (Creation of Exercise Cleared 

Transactions), each resulting Index Swaption Cleared Transaction and each such 

Swaption Restructuring Cleared Transaction and Exercise Cleared Transaction is 

entered into by LCH SA and the relevant Clearing Member on the terms of the related 

Index Swaption Cleared Transaction Confirmation. 

(b) Swaption Trade Date of Index Swaption Cleared Transactions following 

Compression

Notwithstanding paragraph (a) above and subject to paragraph (c) below, where Index 

Swaption Cleared Transactions are subject to compression in accordance with Chapter 

3 (Compression) of Title III (Clearing Operations) of the CDS Clearing Rule Book, the 

Swaption Trade Date of any resulting Index Swaption Cleared Transaction(s) shall be, 

in respect of any Index Swaption Cleared Transaction subject to:

(i) ad hoc compression (as described in Chapter 3 (Compression) of Title III 

(Clearing Operations) of the CDS Clearing Rule Book), the date on which the 

request for compression was effectively received and processed in accordance 

with Section 5 of the Procedures, which shall be: 

(A) the Clearing Day on which such request is submitted and uploaded by 

the relevant Clearing Member provided that such request for 

compression was received by LCH SA before 7.00 p.m. on such Clearing 

Day (if such request is submitted and uploaded by the relevant Clearing 

Member via any means of access specified in a Clearing Notice) or 5.00 

p.m. (if such request is not submitted via any means of access specified 

in a Clearing Notice in the case of a disruption of the relevant means of 

access); 

(B) the Clearing Day on which such request is submitted if such request is 

not submitted via any means of access specified in a Clearing Notice in 

the case of disruption of the relevant means of access and is submitted 

after 5.00 p.m. but LCH SA, in its sole discretion, processes such request 

on the Clearing Day on which such request is submitted; and 

(C) unless the relevant Clearing Member instructs the Operations 

Department to withdraw such request, the Clearing Day following the 

Clearing Day on which such request is submitted if such request is not 
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submitted via any means of access specified in a Clearing Notice in the 

case of disruption of the relevant means of access and is submitted after 

5.00 p.m. and LCH SA, in its sole discretion, does not process such 

request on the Clearing Day on which such request is submitted; or

(ii) automatic compression (as described in Chapter 3 (Compression) of Title III 

(Clearing Operations) of the CDS Clearing Rule Book), the Clearing Day on which 

such Index Swaption Cleared Transaction is automatically compressed by LCH 

SA in accordance with Section 5 of the Procedures.

(c) Resetting of Swaption Trade Date following Compression

If LCH SA determines that the Swaption Trade Date for a Cleared Transaction 

following compression would be after a DC Announcement Coverage Cut-off Date 

whereas the Swaption Trade Date for the Cleared Transactions from which it was 

created would have been prior to such DC Announcement Coverage Cut-off Date had 

the Cleared Transaction not been compressed, LCH SA shall take such action as it 

deems necessary to ensure that such DC Credit Event Announcement is applicable to 

such Cleared Transaction, including, without limitation, specifying an earlier Swaption 

Trade Date for such Cleared Transaction.

(d) Compression Cut-off Date

An Index Swaption Cleared Transaction (or a Swaption Restructuring Cleared 

Transaction or Exercise Cleared Transaction created from such an Index Swaption 

Cleared Transaction) may not be subject to compression (in accordance with Chapter 

3 (Compression) of Title III (Clearing Operations) of the CDS Clearing Rule Book and 

Section 5 of the Procedures) after the Compression Cut-off Date applicable to such 

Index Swaption Cleared Transaction.

2.2 Index Swaption Cleared Transaction Confirmation

The Index Swaption Cleared Transaction Confirmation is amended, supplemented and 

completed as follows:

(a) by deleting the words "between [⚫] (Party A) and [⚫] (Party B)" in the second and 

third line of the first paragraph and replacing them with:

"between LCH SA ("Party A") and Clearing Member, as identified in the relevant CDS 

Admission Agreement between such Clearing Member and Party A ("Party B")";

(b) by deleting the third paragraph thereof and replacing it with the following: 

"This Confirmation supplements, forms a part of, and is subject to, the CDS Clearing 

Documentation, as defined in the CDS Clearing Rule Book.";

(c) by deleting the fourth paragraph thereof and replacing it with the following:

"The terms of the Swaption Transaction, which is an Index Swaption Cleared 

Transaction, to which this Confirmation relates are as follows:";
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(d) by specifying that “Standard Terms Date” is:

(i) if the Index Swaption Cleared Transaction in respect of which the Underlying 

Index Transaction references a Markit iTraxx® Europe Index Series:

“the most recent iTraxx® Europe Untranched Standard Terms Supplement 

published prior to the Swaption Trade Date”;

(ii) if the Index Swaption Cleared Transaction in respect of which the Underlying 

Index Transaction references a Markit CDXTM Index Series:

“the most recent CDX Untranched Transactions Standard Terms Supplement

published prior to the Swaption Trade Date”;

(e) by specifying that the “Calculation Agent” is Party A;

(f) by inserting the following under “Additional terms”: 

"On the Expiration Date, Swaption Buyer may notify Swaption Seller (which such 

notification may be given orally, including by telephone) that the Swaption 

Transaction specified in such notice shall be terminated in whole and that no further 

amounts shall become due and payable by Swaption Buyer to Swaption Seller or vice 

versa in respect of such Swaption Transaction and that notice will be deemed to be 

irrevocable. Swaption Buyer will execute and deliver to Swaption Seller a written 

confirmation confirming the substance of any telephonic notice within one Exercise 

Business Day of that notice. Failure to provide that written confirmation will not affect 

the validity of the telephonic notice."; 

(g) by deleting the contact details for notices and the account details; 

(h) by specifying that the "Specified Derivatives Clearing Organization" is LCH SA (subject 

to the terms of Part C of the CDS Clearing Supplement); and 

(i) by deleting the signature blocks.

2.3 Amendments to 2014 ISDA Credit Derivatives Definitions 

(a) For the purposes of this Part C of the CDS Clearing Supplement, Section 11.2(c)(iv) of 

the 2014 ISDA Credit Derivatives Definitions as incorporated in any Index Cleared 

Transaction shall be deemed to be amended so as to enable LCH SA to designate a 

designee for the additional purposes of delivering or receiving any Credit Event Notice 

or Notice to Exercise Movement Option relating to an M(M)R Restructuring and such 

that, where LCH SA is the designator in relation to any Swaption Restructuring Cleared 

Transaction or Exercise Cleared Transaction, as applicable, it is permitted to designate 

any relevant Matched Buyer or Matched Seller, as applicable, in accordance with 

Section 9 (Matched Pair Designations) as its designee, notwithstanding that such 

relevant Matched Buyer or Matched Seller, as applicable, is not its Affiliate.

(b) The Protocol Effectiveness Condition (as defined in the 2019 ISDA Narrowly Tailored 

Credit Event Protocol published by ISDA on 27 August 2019 and as further 
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supplemented from time to time (the "2019 NTCE Protocol")) being satisfied, then 

from and including the Implementation Date (as defined in the 2019 NTCE Protocol) 

the amendments set forth in Schedule 1 (Amendments) of the 2019 NTCE Protocol 

shall apply to each Index Swaption Cleared Transaction which incorporates the 2014 

ISDA Credit Derivatives Definitions and each such Index Swaption Cleared Transaction 

shall be a Protocol Covered Transaction for the purposes of the 2019 NTCE Protocol

provided that:

(i) the First Novation Date in respect of such Index Swaption Cleared Transaction 

is prior to the Implementation Date;

(ii) such Index Swaption Cleared Transaction is not an Excluded Transaction (as 

defined in the 2019 NTCE Protocol) provided that if the Underlying Index 

Transaction of such Index Swaption Cleared Transaction relates to more than 

one Reference Entity and would otherwise be a Protocol Covered Transaction 

but for the inclusion of any Affected Portion (as defined in the 2019 NTCE 

Protocol) therein, such Affected Portion shall be excluded for the purposes of 

this Section 2.3(b) and the remaining portion of such Index Swaption Cleared 

Transaction shall be deemed to be a Protocol Covered Transaction;

(iii) the Expiration Date in respect of such Index Swaption Cleared Transaction is on 

or after the Implementation Date; and

(iv) no Event Determination Date has occurred in respect of the Underlying Index 

Transaction of such Index Swaption Cleared Transaction prior to the 

Implementation Date.

2.4 Terms of STM Cleared Transaction

The following terms of a registered STM Cleared Transaction are designated as the “STM 

Cleared Terms”.

If a Cleared Transaction is designated as an STM Cleared Transaction in accordance with 

Article 3.1.10.7 of the CDS Clearing Rule Book the terms of such Cleared Transaction will 

automatically, and without any further action by either party, include the STM Cleared 

Terms. 

(a) Net present value

(i) LCH SA shall, at least once per Cash Payment Day, determine the net present 

value of this STM Cleared Transaction in such manner and at such times as may 

be provided in Section 2 of the Procedures. 

(ii) Immediately upon LCH SA making such a determination of the net present 

value of this STM Cleared Transaction: 

(A) An amount (determined in accordance with Section 2.14 (NPV Amount) 

of the Procedures) of cash may become due and payable by the Clearing 

Member or LCH SA (as applicable, and as determined in accordance with 
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Section 2.14 (NPV Amount) of the Procedures) under these STM Cleared 

Terms; and 

(B) the net present value of this STM Cleared Transaction shall for all 

purposes be reset to zero. 

(iii) The amount (if any) referred to in (ii)(A) above shall immediately become due 

and payable by the relevant party under the STM Cleared Terms applicable to 

this STM Cleared Transaction and shall be made in such manner and at such 

times as may be provided in Section 2 of the Procedures.

(iv) In any circumstance preventing the NPV Payments or Variation Margin 

Collateral Transfers from being performed in US Dollar, LCH SA shall be entitled 

to convert any amount denominated in US Dollar into Euro in accordance with 

Article 4.2.3.2 of the CDS Clearing Rule Book. 

(b) Price Alignment Amount 

(i) LCH SA shall, at least once per Cash Payment Day, determine the Price 

Alignment Amount in respect of this STM Cleared Transaction in such manner 

and at such times as may be provided in Section 2 of the Procedures. 

(ii) Immediately upon LCH SA making such a determination of the Price Alignment 

Amount in respect of this STM Cleared Transaction, an amount (determined in 

accordance with Section 2.17 (Price Alignment Amount) of the Procedures) of 

cash may become due and payable by the Clearing Member or LCH SA (as 

applicable, and as determined in accordance with Section 2.17 (Price Alignment 

Amount) of the Procedures) under these STM Cleared Terms. 

(iii) The amount (if any) referred to in (ii) above shall immediately become due and 

payable by the relevant party under the STM Cleared Terms applicable to this 

STM Cleared Transaction and shall be made in such manner and at such times 

as may be provided in Section 2 of the Procedures.

3. PAYMENTS 

3.1 Obligation to pay 

Each of LCH SA and each Clearing Member will make each payment specified under the terms 

of each Cleared Transaction to be made by it, subject to the other provisions of the CDS 

Clearing Documentation. 

Payments under any Cleared Transaction will be made on the due date for value on that date 

in the place of the account specified for the relevant party in the CDS Admission Agreement 

(or such other account as may be designated by it from time to time for such purpose in 

accordance with the CDS Admissions Agreement and/or the Procedures, as applicable) and 

otherwise in accordance with the CDS Clearing Documentation, in freely transferable funds 

and in the manner customary for payments in the required currency. 
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3.2 Payment of Premium under Original Transactions

(a) If the Premium is due and payable under the terms of an Original Transaction on or 

before the Clearing Day on which the related Index Swaption Cleared Transactions are 

created by novation pursuant to Title III (Clearing Operations) of the CDS Clearing Rule 

Book, such amount shall be payable under and in accordance with the terms of such 

Original Transaction. In such event, no corresponding Premium shall be payable in 

respect of such Index Swaption Cleared Transactions. 

(b) If the Premium Payment Date of an Original Transaction would be a date falling after 

the Clearing Day on which the Index Swaption Cleared Transactions related to such 

Original Transaction are created by novation pursuant to Title III (Clearing Operations) 

of the CDS Clearing Rule Book then the corresponding Premium Payment Date for the 

related Index Swaption Cleared Transactions shall occur on the Transaction Business 

Day which is also a Clearing Day immediately following the Clearing Day on which such 

related Index Swaption Cleared Transactions are created and the Index Swaption 

Cleared Transaction Confirmation shall be deemed to have been amended 

accordingly.

4. CREDIT EVENTS AND SUCCESSION EVENTS

4.1 Determination of Credit Events and Succession Events

Notwithstanding any provision of any Cleared Transaction to the contrary:

(a) LCH SA (in its capacity as Calculation Agent with respect to such Cleared Transaction) 

shall not make any determination pursuant to Section 2.10 (Substitute Reference 

Obligation) of the 2014 ISDA Credit Derivatives Definitions or in respect of any matter 

which is or may be subject to resolution under Sections 3.5 (Successor Resolutions) or 

3.6 (Substitute Reference Obligation Resolutions) of the DC Rules; and

(b) neither LCH SA nor any Clearing Member shall be entitled to deliver a Successor 

Notice or a Credit Event Notice (other than Credit Event Notices in relation to an 

M(M)R Restructuring in accordance with Section 5.3 (Triggering of Swaption 

Restructuring Cleared Transactions)).

4.2 M(M)R Restructuring Timeline

(a) Publication of Credit Event Timeline

Upon a DC Credit Event Announcement of an M(M)R Restructuring, LCH SA will publish 

and make available to Clearing Members a timeline in respect of the relevant M(M)R 

Restructuring and related Cleared Transactions for which a Component Transaction of 

the Underlying Index Transaction references the relevant combination of Reference 

Entity, Transaction Type and Reference Obligation to which such M(M)R Restructuring 

applies, to notify, among other things, the relevant Novation Cut-off Date, 

Compression Cut-off Date and First Novation Date.

Any such timeline shall (i) be published and made available on the date of such DC 

Credit Event Announcement or, if LCH SA determines that such publication on such 
LCH SA © 2021 247 Published on 30 July 2021[●]

date is not practicably possible, as soon as practicable thereafter (but in no event later 

than the Transaction Business Day before the earlier of the relevant Novation Cut-off 

Date and the relevant Compression Cut-off Date) and (ii) in all cases be without 

prejudice to and consistent with the terms of the CDS Clearing Documentation and 

any relevant DC Resolutions. 

(b) Amendment of Credit Event Timeline

Any such timeline may be subject to subsequent amendment by LCH SA, by means of 

a Clearing Notice to Clearing Members, only to reflect subsequent DC Resolutions, 

timing provisions of any relevant Transaction Auction Settlement Terms, or in each 

case any subsequent amendments thereto. Any such amendment shall be made by 

LCH SA as soon as reasonably practicable following the relevant event.

4.3 Reversal of DC Credit Event Announcements and Margining

If a DC Credit Event Announcement is reversed then, subject to Section 10.2(a)(i) of the 2014 

ISDA Credit Derivatives Definitions, LCH SA shall be obliged in accordance with Section 3 of 

the Procedures to calculate and shall be entitled to call for Margin and/or be obliged to return 

Margin with respect to each Clearing Member on the basis that the DC Credit Event 

Announcement that is reversed had not been made.

5. RESTRUCTURING

5.1 Creation and Notification of Swaption Restructuring Matched Pairs

Following the occurrence of a DC Credit Event Announcement in respect of an M(M)R 

Restructuring which would be applicable to a Component Transaction of the Underlying Index 

Transaction to which a set of Index Swaption Cleared Transactions of the same Swaption Type 

relates, LCH SA will create (on one or more occasions) Swaption Restructuring Matched Pairs 

in accordance with Section 9.1 (Creation of Matched Pairs). Each such Swaption Restructuring 

Matched Pair shall be composed of two Swaption Restructuring Cleared Transactions. 

If a DC Credit Event Announcement occurs in respect of an M(M)R Restructuring in respect of 

a further Reference Entity (a "Subsequent Restructuring") which would be applicable to 

another Component Transaction of the Underlying Index Transaction of a Swaption 

Restructuring Cleared Transaction prior to the expiry of the CEN Triggering Period for the first 

Reference Entity in respect of which an M(M)R Restructuring occurred (the "First 

Restructuring") and the CEN Triggering Period for such Subsequent Restructuring 

commences prior to the Expiration Date, any Swaption Restructuring Matched Pairs for the 

First Restructuring shall also be Swaption Restructuring Matched Pairs in respect of the 

Subsequent Restructuring. The same shall apply to any further relevant DC Credit Event 

Announcements in respect of M(M)R Restructurings in respect of further Reference Entities 

during this period and the terms 'First Restructuring' and 'Subsequent Restructuring' in this 

Section 5 shall be interpreted accordingly.

LCH SA shall notify the relevant Matched Buyer and Matched Seller comprised within each 

Swaption Restructuring Matched Pair of: 
LCH SA © 2021 248 Published on 30 July 2021[●]

(a) the identity of the other Clearing Member (together with the address, fax number, 

telephone number, contact email address and other applicable notice details of such 

other Clearing Member) of such Matched Pair; 

(b) the associated Swaption Restructuring Matched Pair Amount; and

(c) the associated SRMP Triggerable Amount, 

as soon as reasonably practicable following the related Compression Cut-off Date, but in any 

event, at or prior to the SRMP Notification Deadline. 

5.2 Creation of Swaption Restructuring Cleared Transactions

Upon the notification to the relevant Clearing Members of Swaption Restructuring Matched 

Pairs, where two or more Index Swaption Cleared Transactions have been combined into a 

single transaction as part of the matching process and/or where any Index Swaption Cleared 

Transaction has been split into two or more separate transactions as part of the matching 

process, the relevant original Index Swaption Cleared Transactions entered into by each 

Clearing Member with LCH SA will be deemed terminated and new Swaption Restructuring 

Cleared Transactions of the same Swaption Type will be deemed to be entered into between 

each such Clearing Member and LCH SA, with each such Swaption Restructuring Cleared 

Transaction having a Swaption Notional Amount (and with the Underlying Index Transaction 

in respect of each such Swaption Restructuring Cleared Transaction having an Original 

Notional Amount) corresponding to the Swaption Restructuring Matched Pair Amount of the 

Swaption Restructuring Matched Pair in which the relevant Clearing Member is comprised as 

a Matched Buyer or a Matched Seller, as applicable. Subject to Section 9.3 (Resetting of 

Swaption Trade Date) below, the Swaption Trade Date of such Swaption Restructuring 

Cleared Transactions shall be the date of such notification. 

With effect from the notification of the Swaption Restructuring Matched Pairs, any Index 

Swaption Cleared Transaction forming part of a Swaption Restructuring Matched Pair shall 

henceforth constitute a Swaption Restructuring Cleared Transaction for the purposes of this 

CDS Clearing Supplement and the Swaption Notional Amount of such Swaption Restructuring 

Cleared Transactions shall be the Swaption Restructuring Matched Pair Amount.

5.3 Triggering of Swaption Restructuring Cleared Transactions

Subject as set out in Section 8 (Delivery of Notices), and notwithstanding anything to the 

contrary in the terms of any Cleared Transaction, Clearing Members may only deliver Credit 

Event Notices (as CDS Buyer or CDS Seller) in relation to an M(M)R Restructuring during the 

CEN Triggering Period following notification of Swaption Restructuring Matched Pairs by LCH 

SA and subject always to the terms of the relevant Swaption Restructuring Cleared 

Transaction.

For the purposes of the delivery of Credit Event Notices in respect of an M(M)R Restructuring 

and the Swaption Restructuring Cleared Transactions of a Swaption Restructuring Matched 

Pair, the Floating Rate Payer Calculation Amount by reference to which a Credit Event Notice 

may be delivered shall be an amount equal to the applicable SRMP Triggerable Amount.
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Any Credit Event Notice delivered in respect of a Swaption Restructuring Matched Pair for an 

amount which is greater than the relevant SRMP Triggerable Amount shall be ineffective as 

to such excess.

5.4 Partial triggering of a Swaption Restructuring Cleared Transaction 

If a Notifying Party has delivered a valid Credit Event Notice during the CEN Triggering Period 

applicable to it that specifies a Triggered Amount that is less than the SRMP Triggerable 

Amount, following the expiry of the CEN Triggering Period, each Swaption Restructuring 

Cleared Transaction (an "Original Swaption Restructuring Cleared Transaction") of the 

relevant Swaption Restructuring Matched Pair shall be split into two separate Swaption 

Restructuring Cleared Transactions: 

(a) one of such Swaption Restructuring Cleared Transactions: 

(i) shall have an SRMP Triggerable Amount equal to the Triggered Amount; and

(ii) shall have a Swaption Notional Amount equal to (x) the Swaption Notional 

Amount of the Original Swaption Restructuring Cleared Transaction divided by

(y) the SRMP Triggerable Amount of the Original Swaption Restructuring 

Cleared Transaction multiplied by (z) the Triggered Amount specified in the 

Credit Event Notice, 

and will be deemed to have been triggered in whole by the relevant Credit Event 

Notice (a "Triggered Cleared Transaction"); and 

(b) the other of such Swaption Restructuring Cleared Transactions (the "Remaining 

Untriggered Cleared Transaction"): 

(i) shall have an SRMP Triggerable Amount equal to the SRMP Triggerable Amount 

of the Original Swaption Restructuring Cleared Transaction minusthe Triggered 

Amount; and 

(ii) shall have a Swaption Notional Amount equal to (x) the Swaption Notional 

Amount of the Original Swaption Restructuring Cleared Transaction less (y) the 

Swaption Notional Amount determined in accordance with sub-paragraph 

(a)(ii) above, 

and no Credit Event Notice will be deemed to have been delivered in respect of such 

Remaining Untriggered Cleared Transaction. 

In the event that more than one Credit Event Notice is delivered during the CEN Triggering 

Period, the process set-out above shall be applied to the Credit Event Notice which was 

validly delivered first; provided, however, that for this purpose any Credit Event Notice(s) 

delivered by CDS Seller on or prior to the Exercise Cut-off Date applicable to CDS Seller shall 

be deemed to have been delivered prior to any Credit Event Notice(s) delivered by CDS Buyer 

on or prior to the Exercise Cut-off Date applicable to CDS Buyer. Each subsequent Credit 

Event Notice shall then be applied to the Remaining Untriggered Cleared Transaction (and 

each subsequent Remaining Untriggered Cleared Transaction) until either no further Credit 

Event Notices remain or the SRMP Triggerable Amount has been reduced to zero. 
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Section 1.33(b) of the 2014 ISDA Credit Derivatives Definitions shall not apply. 

In the event that a Credit Event Notice has been validly delivered in respect of a Subsequent

Restructuring prior to the expiry of the CEN Triggering Period for the First Restructuring, such 

Credit Event Notice shall be split between each Triggered Cleared Transaction and Remaining 

Untriggered Cleared Transaction created pursuant to this Section 5.4 on a proportionate 

basis and a Credit Event Notice shall consequently be deemed to have been delivered in 

respect of each such Triggered Cleared Transaction and Remaining Untriggered Cleared 

Transaction.

5.5 Notice to Exercise Movement Option

Subject as set out in Section 8 (Delivery of Notices), Clearing Members may only deliver a 

Notice to Exercise Movement Option during the NEMO Triggering Period.

5.6 Delivery of Credit Event Notices and Notices to Exercise Movement Option 

Credit Event Notices and Notices to Exercise Movement Option shall be delivered between 

Matched Buyer and Matched Seller of a Swaption Restructuring Matched Pair in accordance 

with Section 8.1 (General Rules relating to Notices) below and the terms of the Swaption 

Restructuring Cleared Transactions, in each case acting in its own name in respect of the 

Cleared Transaction of the Swaption Restructuring Matched Pair to which it is a party and as 

designee of LCH SA in respect of the other Swaption Restructuring Cleared Transaction of the 

Swaption Restructuring Matched Pair.

5.7 Swaption Restructuring Clearing Member Notices

(a) Duty to deliver Swaption Restructuring Clearing Member Notices

Each Clearing Member shall notify LCH SA or deliver a copy to LCH SA of any notice 

delivered or received by such Clearing Member to or from another Clearing Member 

comprised in a Swaption Restructuring Matched Pair, including, without limitation, 

any Credit Event Notice or Notice to Exercise Movement Option which was delivered 

in accordance with Section 5.6 (Delivery of Credit Event Notices and Notices to Exercise 

Movement Option) above and which such Clearing Member asserts or acknowledges 

was effective for the purposes of this CDS Clearing Supplement and the relevant 

Swaption Restructuring Cleared Transactions (such notification, or delivery of such 

copy, in respect of any relevant notice, a Swaption Restructuring Clearing Member 

Notice) by no later than 5.00 p.m. on the last date on which such notice could validly 

be sent (in each case, the Swaption Restructuring Clearing Member Notice Deadline). 

(b) No Swaption Restructuring Clearing Member Notice received

Where LCH SA does not receive a Swaption Restructuring Clearing Member Notice in 

respect of a Credit Event Notice or a Notice to Exercise Movement Option from both 

Clearing Members in the relevant Swaption Restructuring Matched Pair on or prior to 

the relevant Swaption Restructuring Clearing Member Notice Deadline, LCH SA shall 

take no action in respect of the relevant Swaption Restructuring Matched Pair. 
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(c) Consequences of no Swaption Restructuring Clearing Member Notice being 

received by LCH SA

If LCH SA determines in its sole discretion that, notwithstanding the fact that no 

Swaption Restructuring Clearing Member Notice has been received by LCH SA in 

respect of any Credit Event Notice or Notice to Exercise Movement Option by the 

relevant Swaption Restructuring Clearing Member Notice Deadline, such notice was 

in fact delivered or received directly by a Clearing Member and would have been 

effective for the purposes of this CDS Clearing Supplement, LCH SA shall use 

commercially reasonable efforts to give effect to the terms of such Credit Event Notice 

or Notice to Exercise Movement Option, as the case may be. If LCH SA gives effect to 

the terms of such notice pursuant to this Section 5.7 (c) then the provisions of this Part 

C of the CDS Clearing Supplement shall apply as if LCH SA had received a Swaption 

Restructuring Clearing Member Notice in respect of the relevant notice prior to the 

Swaption Restructuring Clearing Member Notice Deadline.

If LCH SA determines in its sole discretion that it is not possible to give effect to the 

terms of any such Credit Event Notice or Notice to Exercise Movement Option in 

respect of which no Swaption Restructuring Clearing Member Notice was received by 

LCH SA by the relevant Swaption Restructuring Clearing Member Notice Deadline 

then, following Exercise, an amount shall be payable between the Clearing Members 

equal to the difference between the value of the Matched Buyer Contract had the 

Swaption Restructuring Clearing Member Notice been given to LCH SA prior to the 

Swaption Restructuring Clearing Member Notice Deadline and the value of such 

contract in the absence of such Swaption Restructuring Clearing Member Notice 

having been given. Such difference in value shall be determined as of the earlier of 

the day on which notice is given by any relevant Clearing Member that such amount 

is due and payable and the eighth Transaction Business Day following the Auction 

Settlement Date, No Auction Announcement Date or Auction Cancellation Date, as 

applicable, by reference to the relevant Auction Settlement Amount or end of day 

contributed prices, in each case if available. In each case, the relevant Clearing 

Members shall have enforcement rights as against each other pursuant to the 

Contracts (Rights of Third Parties) Act 1999 in respect of any resulting payments and 

deliveries; LCH SA shall have no liability in respect thereof.

5.8 Effect of Credit Event Notices and Notices to Exercise Movement Option

Notwithstanding any other provision hereof or of the 2014 ISDA Credit Derivatives 

Definitions, Matched Buyer and Matched Seller shall have no payment or delivery obligations 

in respect of the M(M)R Restructuring as a result of the delivery of a Credit Event Notice or 

Notice to Exercise Movement Option. Such payment and delivery obligations shall instead 

arise under the Restructuring Cleared Transactions created pursuant to Section 7.3 (Creation 

of Restructuring Cleared Transactions for Triggering and/or Settlement purposes) following 

exercise (if applicable). 
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5.9 Reversal of DC Credit Event Announcements

If a DC Credit Event Announcement made in respect of an M(M)R Restructuring is reversed 

then, subject to Section 10.2(a)(i) of the 2014 ISDA Credit Derivatives Definitions:

(a) LCH SA shall have no obligation to create Swaption Restructuring Matched Pairs in 

accordance with Section 5.1 (Creation and Notification of Swaption Restructuring 

Matched Pairs); 

(b) provided that no Subsequent Restructuring has occurred, any Swaption Restructuring 

Matched Pairs so created (or created pursuant to Section 5.4 (Partial triggering of a 

Swaption Restructuring Cleared Transaction)) shall be deemed not to have been 

created; 

(c) any Credit Event Notices delivered in connection with such M(M)R Restructuring shall 

be deemed to be ineffective; 

(d) LCH SA shall, where applicable, make relevant registrations in the TIW in order to 

reflect such reversal which shall also automatically result in such registrations being 

made in respect of any related CCM Client Transactions; and

(e) Section 4.3 (Reversal of DC Credit Event Announcements and Margining) shall apply. 

5.10 Reports

Without prejudice to the notification requirements set out elsewhere in the CDS Clearing 

Documentation, LCH SA will communicate to the relevant Clearing Members, on the basis of 

information received from Clearing Members, amongst other things:

(a) the aggregate Triggered Amounts of Swaption Restructuring Cleared Transactions to 

which they are a party; and

(b) the results of the exercise of any Movement Option in relation to Swaption 

Restructuring Cleared Transactions to which they are a party, 

at or around 7.00 p.m. on each day during each CEN Triggering Period and NEMO Triggering 

Period, as applicable, through the reports referred to in Section 5 of the Procedures. 

For the avoidance of doubt, such communication shall not affect the validity or effectiveness 

of any Credit Event Notice or Notice to Exercise Movement Option which shall be subject to 

the terms of the relevant Swaption Restructuring Cleared Transaction.

5.11 Expiry of CEN Triggering Period

Upon the expiry of the CEN Triggering Period (or, if a Subsequent Restructuring has occurred, 

after the expiry of the CEN Triggering Period for such Subsequent Restructuring) and, if 

applicable, subsequent to the application of any valid Credit Event Notices delivered during 

the CEN Triggering Period pursuant to Section 5.4 (Partial triggering of a Swaption 

Restructuring Cleared Transaction), the Swaption Restructuring Cleared Transactions of any 

Swaption Restructuring Matched Pairs (including, without limitation any Swaption 
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Restructuring Matched Pairs composed of Remaining Untriggered Cleared Transactions 

created pursuant to Section 5.4 (Partial triggering of a Swaption Restructuring Cleared 

Transaction)) in respect of which no valid Credit Event Notice in respect of an M(M)R 

Restructuring has been delivered shall cease to be paired together and shall instead 

constitute Index Swaption Cleared Transactions for the purposes of this CDS Clearing 

Supplement and the Swaption Restructuring Matched Pair Amount of such Swaption 

Restructuring Cleared Transactions shall become the Swaption Notional Amount of such 

Index Swaption Cleared Transactions.

6. EXERCISE MATCHED PAIRS

6.1 Creation and Notification of Exercise Matched Pairs

Subject to Section 5.11 (Expiry of CEN Triggering Period) above, if Swaption Restructuring 

Matched Pairs have previously been created pursuant to Section 5.1 (Creation and 

Notification of Swaption Restructuring Matched Pairs) or Section 5.4 (Partial triggering of a 

Swaption Restructuring Cleared Transaction), such Swaption Restructuring Matched Pairs and 

the Swaption Restructuring Cleared Transactions from which they are formed shall also 

automatically constitute Exercise Matched Pairs and Exercise Cleared Transactions (in 

addition to being Swaption Restructuring Matched Pairs and Swaption Restructuring Cleared 

Transactions) for the purposes of this CDS Clearing Supplement.

Notwithstanding the above, if the CEN Triggering Period for an M(M)R Restructuring ends on 

a date falling during the EMP Creation Period, the relevant Swaption Restructuring Matched 

Pairs created in respect of such M(M)R Restructuring shall not become Exercise Matched 

Pairs pursuant to the above until after the expiry of the CEN Triggering Period and subject to 

the prior application of Sections 5.4 (Partial triggering of a Swaption Restructuring Cleared 

Transaction) and 5.11 (Expiry of CEN Triggering Period) above, if applicable.

On each Transaction Business Day during the EMP Creation Period, LCH SA will create Exercise 

Matched Pairs in accordance with Section 9.1 (Creation of Matched Pairs) for a set of Index 

Swaption Cleared Transactions of the same Swaption Type. Each such Exercise Matched Pair 

shall be composed of two Exercise Cleared Transactions. 

Upon the creation of an Exercise Matched Pair, LCH SA shall: 

(a) notify the relevant Matched Buyer and Matched Seller comprised within each 

Exercise Matched Pair (and any Exercise Delegation Beneficiary thereof) of the 

creation of such Exercise Matched Pair, without however providing any detail in 

respect of the identity of the other Clearing Member (or its Exercise Delegation 

Beneficiary if applicable); and

(b) provide the relevant Matched Buyer and Matched Seller comprised within each 

Exercise Matched Pair (and any Exercise Delegation Beneficiary thereof) with a report 

the access to which will be restricted (a “Protected Exercise Matched Pair Report”) 

and which contains information on: 

(i) the identity of the other Clearing Member (or its Exercise Delegation 

Beneficiary if applicable) together with the address, fax number, telephone 
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number, email address and other applicable notice details of such other 

Clearing Member (or its Exercise Delegation Beneficiary if applicable) of the 

Exercise Matched Pair; and 

(ii) the associated Exercise Matched Pair Amount, 

as soon as reasonably practicable following the related Compression Cut-off Date, but in any 

event, at or prior to the EMP Notification Deadline. 

LCH will provide the Protected Exercise Matched Pair Report in a manner such that the

relevant Matched Buyer and Matched Seller or, if applicable, any relevant Exercise Delegation 

Beneficiaries, may access the information contained in the Protected Exercise Matched Pair 

Reports only upon occurrence of an EEP Failure Event, in accordance with Section 

6.5(a)(ii)below. 

6.2 Creation of Exercise Cleared Transactions

Upon the creation of Exercise Matched Pairs, where two or more Index Swaption Cleared 

Transactions have been combined into a single transaction as part of the matching process 

and/or where any Index Swaption Cleared Transaction has been split into two or more 

separate transactions as part of the matching process, the relevant original Index Swaption 

Cleared Transactions entered into by each Clearing Member with LCH SA will be deemed 

terminated and new Exercise Cleared Transactions of the same Swaption Type will be 

deemed to be entered into between each such Clearing Member and LCH SA, with each such 

Exercise Cleared Transaction having a Swaption Notional Amount (and with the Underlying 

Index Transaction in respect of each such Exercise Cleared Transaction having an Original 

Notional Amount) corresponding to the Exercise Matched Pair Amount of the Exercise 

Matched Pair in which the relevant Clearing Member is comprised as a Matched Buyer or a 

Matched Seller, as applicable. Subject to Section 9.3 (Resetting of Swaption Trade Date) 

below, the Swaption Trade Date of such Exercise Cleared Transactions shall be the date of 

such creation. 

With effect from the creation of Exercised Matched Pairs, any Index Swaption Cleared 

Transaction forming part of an Exercised Matched Pair shall henceforth constitute an Exercise 

Cleared Transaction for the purposes of this CDS Clearing Supplement and the Swaption 

Notional Amount of such Index Swaption Cleared Transactions shall be the Exercise Matched 

Pair Amount.

6.3 Exercise and Abandonment by way of EEP

The Exercise (in whole or in part) and Abandonment of Exercise Cleared Transactions shall be 

conducted by way of the submission of Options Intents in the EEP only, save in the 

circumstances specified in Section 6.5(b) (Consequences of EEP Failure) below.

An Option Intent submitted by Matched Buyer (or its Exercise Delegation Beneficiary on its 

behalf, if applicable) via the EEP shall be deemed to constitute the delivery by Matched Buyer 

of a valid Swaption Notice for the purposes of each of the Exercise Cleared Transactions of 

the Exercise Matched Pair (in its own name in respect of the Exercise Cleared Transaction of 

the Exercise Matched Pair to which it is a party and as designee of LCH SA in respect of the 
LCH SA © 2021 255 Published on 30 July 2021[●]

other Exercise Cleared Transaction of the Exercise Matched Pair) if (a) the Submission Time 

for such Option Intent is prior to the Submission Deadline and (b) LCH SA has completed those 

steps necessary to make such Option Intent available for viewing in the EEP, including 

validation of the EEP Controls. 

As used herein, (i) the “Submission Time” for an Option Intent will be the time, as recorded 

by LCH SA, as of which such Option Intent is submitted via the EEP by the relevant Matched 

Buyer (or its Exercise Delegation Beneficiary on its behalf, if applicable) and (ii) “EEP Controls” 

means the controls specified in Section 5 of the Procedures performed by LCH SA immediately 

following the Submission Time. 

An Option Intent shall become irrevocable by the Swaption Buyer as from the Submission 

Time.

For the avoidance of doubt, a Matched Buyer (or its Exercise Delegation Beneficiary if 

applicable) shall not be able to require a Force Submission after the Submission Deadline, 

including if the relevant Option Intent is deemed illogical further to EEP Controls carried out 

at or after the Submission Deadline.

The deemed time of delivery of the Swaption Notice in respect of the relevant Exercise 

Cleared Transaction shall be the Submission Time specified by the EEP in respect of such 

Option Intent. 

The Exercise (in whole or in part) or Abandonment of the Exercise Cleared Transaction of the 

Exercise Matched Pair to which Matched Seller is a party will become accessible in the 

Clearing Member Portal Account of Matched Seller (and in the Client Portal Account of its 

Exercise Delegation Beneficiary if applicable) as soon as reasonably practicable following the 

registration of such Exercise or Abandonment by Matched Buyer (or its Exercise Delegation 

Beneficiary) in the EEP. 

6.4 Delegation by Clearing Members to Clients

Solely in respect of the Exercise and Abandonment of the Exercise Cleared Transactions of an 

Exercise Matched Pair which are Client Cleared Transactions, Matched Buyer or Matched 

Seller shall designate its relevant Client to act on its behalf in accordance with this Section 6. 

Any such designation will take effect as soon as reasonably practicable (but not later than five 

Business Days) following receipt by LCH SA of a duly completed and signed Exercise 

Delegation Form (as defined in Section 5 of the Procedures). Such designation cannot be 

revoked. 

Where Matched Buyer designates its Client in accordance with the above, any submission of 

an Option Intent by the Client of Matched Buyer via its Client Portal Account in the EEP prior 

to the Submission Deadline on the Expiration Date shall be deemed to constitute the delivery 

by Matched Buyer of a valid Exercise Notice or Abandonment Notice (as applicable) for the 

purposes of the terms of each of the Exercise Cleared Transactions of the Exercise Matched 

Pair in accordance with Section 6.3 (Exercise and Abandonment by way of EEP) above. 

Where a Client has been designated by its Clearing Member pursuant to this Section 6.4 for 

purposes of the Exercise and Abandonment of Exercise Cleared Transactions, any reference 
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in this CDS Clearing Supplement to a Swaption Notice being delivered to or by a Clearing 

Member, to the submission of Option Intents or the Exercise or Abandonment of an Exercise 

Cleared Transaction by a Clearing Member shall be interpreted accordingly.

6.5 EEP failure and resolution

(a) Notification of EEP Failure and Resolution

(i) LCH SA to notify Clearing Members and Exercise Delegation Beneficiaries of EEP 

Failure Event

If LCH SA becomes aware that the EEP is or will be unavailable for the 

submission or receipt of Option Intents with respect to an Expiration Date in a 

timely manner (an EEP Failure Event), then LCH SA will, as soon as reasonably 

practicable and in any case within one hour after the occurrence of the EEP 

Failure Event, notify all relevant Clearing Members (and any Exercise 

Delegation Beneficiary thereof) of such occurrence, including the time at which 

such failure occurred (the EEP Failure Event Time).

(ii) Access to the Protected Exercise Matched Pair Report

As soon as possible following the occurrence of an EEP Failure Event, LCH will 

authorise Clearing Members or their Exercise Delegation Beneficiaries, as 

applicable (by any communication method including, without limitation, 

phone, email or any electronic messaging system) to access the information 

contained in the Protected Exercise Matched Pair Report.

(iii) LCH SA to notify Clearing Members of Resolution of EEP Failure Event

If, subsequent to an EEP Failure Event, LCH SA determines that an EEP Failure 

Event previously notified to Clearing Members is no longer in effect, LCH SA will 

as soon as reasonably practicable notify all relevant Clearing Members and 

Exercise Delegation Beneficiaries accordingly, including the time (the EEP 

Resolution Time) at which such EEP Failure Event is deemed to have been 

resolved and following which the EEP is operative for the purposes of the 

submission of Option Intents in respect of Exercise Cleared Transactions. 

(b) Consequences of EEP Failure

From (and including) the EEP Failure Event Time to (but excluding) the EEP Resolution 

Time:

(i) Section 6.3 (Exercise and Abandonment by way of EEP) shall not apply and 

accordingly Swaption Notices shall be delivered in accordance with the 

provisions for the delivery of notices at Section 8 (Delivery of Notices) hereof 

and the terms of the relevant Exercise Cleared Transaction (and not via the 

EEP);

(ii) if Matched Buyer has designated its Client as its Exercise Delegation Beneficiary 

pursuant to Section 6.4 (Delegation by Clearing Members to Clients) above, 
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such Exercise Delegation Beneficiary shall be entitled to send a Swaption Notice 

to Matched Seller as designee of Matched Buyer in accordance with Section 8

(Delivery of Notices) hereof using the notice details provided by LCH SA in the 

Protected Exercise Matched Pair Report and such Swaption Notice shall be 

copied to Matched Buyer (provided that failure to provide such copy shall not 

affect the validity of the relevant Swaption Notice);

(iii) if Matched Seller has designated its Client as its Exercise Delegation Beneficiary, 

Swaption Notices shall be sent by Matched Buyer (or its Client as its Exercise 

Delegation Beneficiary if applicable) to the Client of Matched Seller as its 

Exercise Delegation Beneficiary in accordance with Section 8 (Delivery of 

Notices) hereof using the notices details provided by LCH SA in the Protected 

Exercise Matched Pair Report and shall be copied to Matched Seller and, where 

the Swaption Notice is sent by the Client of Matched Buyer as its Exercise 

Delegation Beneficiary, shall be copied to Matched Buyer (provided in each 

case that failure to provide such copy shall not affect the validity of the relevant 

Swaption Notice);

(iv) subject to Section 8.3 (Oral Notices) below in respect of Abandonment Notices 

delivered to LCH SA, an Abandonment Notice given in accordance with this 

Section 6.5(b) may be given orally, including by telephone. Matched Buyer (or 

its Exercise Delegation Beneficiary if such Exercise Delegation Beneficiary gives 

an Abandonment Notice orally) will execute and deliver to Matched Seller (and 

the Exercise Delegation Beneficiary of Matched Seller if applicable) a written 

confirmation confirming the substance of any telephonic notice within one 

Transaction Business Day of the telephonic notice. Without prejudice to 

Section 6.8 (Consequences of no Swaption Clearing Member Notice being 

received by LCH SA) below, failure to provide that written confirmation will not 

affect the validity of the telephonic notice;

(v) any Exercise Notice delivered in respect of an Exercise Matched Pair for an 

amount which is greater than the related Exercise Matched Pair Notional 

Amount shall be ineffective as to such excess;

(vi) any Swaption Notice delivered via the EEP prior to the EEP Failure Event Time 

will be valid and will not be affected by such EEP Failure Event; and

(vii) any Swaption Notice delivered or purported to be delivered via the EEP at or 

following the EEP Failure Event Time but prior to the EEP Resolution Time will 

not be valid and effective.

Section 6.3 (Exercise and Abandonment by way of EEP) shall apply with effect from the 

EEP Resolution Time and, accordingly, any Swaption Notice thereafter delivered or 
LCH SA © 2021 258 Published on 30 July 2021[●]

purported to be delivered directly pursuant to this Section 6.5(b) will not be valid and 

effective.

(c) Duty to deliver Swaption Clearing Member Notices

Each Clearing Member shall notify LCH SA or deliver a copy to LCH SA of any Swaption 

Notice delivered by such Clearing Member to another Clearing Member comprised in 

an Exercise Matched Pair pursuant to Section 6.5(b) (Consequences of EEP Failure) 

above which such Clearing Member asserts or acknowledges was effective for the 

purposes of this CDS Clearing Supplement and the relevant Exercise Cleared 

Transactions (such notification, or delivery of such copy, in respect of any relevant 

Swaption Notice, a Swaption Clearing Member Notice) by no later than the 

Submission Deadline on the Expiration Date (the Swaption Clearing Member Notice 

Deadline). 

If a Clearing Member has designated its Client as being entitled to send and receive 

Swaption Notices on its behalf pursuant to Section 6.4 (Delegation by Clearing 

Members to Clients) above, a Swaption Clearing Member Notice in respect of a 

Swaption Notice delivered pursuant to Section 6.5(b) (Consequences of EEP Failure) 

may be sent on its behalf by its Client as its Exercise Delegation Beneficiary. 

6.6 Abandonment of Exercise Cleared Transactions

If, on the Expiration Date, Swaption Buyer elects to Abandon the Exercise Cleared 

Transactions of the Exercise Matched Pair, each Exercise Cleared Transaction shall be 

terminated in whole. 

6.7 Termination of Exercise Cleared Transactions

If: 

(a) no Option Intent is submitted pursuant to Section 6.3 (Exercise and Abandonment by 

way of EEP) or Section 6.4 (Delegation by Clearing Members to Clients) above in 

respect of the Exercise Cleared Transactions of an Exercise Matched Pair; and

(b) where Section 6.5(b) (Consequences of EEP Failure) (or, in respect of a CCM Client 

Cleared Transaction, Mandatory Provision 5.4 (Consequences of EEP Failure)) is 

applicable for some or all of the Exercise Period, LCH SA does not receive a Swaption 

Clearing Member Notice (or Swaption CCM Client Notice) in respect of an Exercise 

Notice or an Abandonment Notice from Swaption Buyer (or its Exercise Delegation 

Beneficiary, as applicable) of the relevant Exercised Matched Pair on or prior to the 

Swaption Clearing Member Notice Deadline (or Swaption CCM Client Notice 

Deadline, as applicable),

then, subject to Section 6.8 (Consequences of no Swaption Clearing Member Notice being 

received by LCH SA) below (or, in the case of a CCM Client Cleared Transaction, Mandatory 

Provision 5.5 (Duty to Deliver Swaption CCM Client Notice), LCH SA shall terminate the 

Exercise Cleared Transactions of the relevant Exercised Matched Pair.
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6.8 Consequences of no Swaption Clearing Member Notice or Swaption CCM Client Notice 

being received by LCH SA

If Section 6.5(b) (Consequences of EEP Failure) is applicable for some or all of the Exercise 

Period and LCH SA determines in its sole discretion that, notwithstanding the fact that no 

Swaption Clearing Member Notice has been received by LCH SA in respect of an Exercise 

Notice by the Swaption Clearing Member Notice Deadline (or, in the case of a CCM Client 

Cleared Transaction, that no Swaption CCM Client Notice has been received by LCH SA in 

respect of an Exercise Notice by the Swaption CCM Client Notice Deadline), an Exercise Notice 

was in fact delivered by a Clearing Member (or its Exercise Delegation Beneficiary) pursuant 

to Section 6.5(b) (Consequences of EEP Failure) (or, in the case of a CCM Client Cleared 

Transaction, pursuant to Mandatory Provision 5.4(a) (Consequences of EEP Failure)) and 

would have been effective for the purposes of this CDS Clearing Supplement, LCH SA shall use 

commercially reasonable efforts to give effect to the terms of such Exercise Notice. If LCH SA 

gives effect to the terms of such Exercise Notice pursuant to this Section 6.8 then the 

provisions of this Part C of the CDS Clearing Supplement shall apply as if LCH SA had received 

a Swaption Clearing Member Notice in respect of the relevant Exercise Notice by the 

Swaption Clearing Member Notice Deadline (or, in the case of a CCM Client Cleared 

Transaction, had received a Swaption CCM Client Notice in respect of the relevant Exercise 

Notice by the Swaption CCM Client Notice Deadline).

If LCH SA determines in its sole discretion that it is not possible to give effect to the terms of 

any such Exercise Notice in respect of which no Swaption Clearing Member Notice was 

received by LCH SA by the Swaption Clearing Member Notice Deadline (or, in the case of a 

CCM Client Cleared Transaction, no Swaption CCM Client Notice was received by LCH SA by 

the Swaption CCM Client Notice Deadline), the relevant Clearing Members (or their Exercise 

Delegation Beneficiaries, as applicable), as identified in the Protected Exercise Matched Pair 

Report, shall acquire rights as against each other as though party to a bilateral credit default 

swap transaction on the terms of the relevant Underlying Index Transaction. The Settlement 

Payment shall be due and payable two Transaction Business Days following the giving of a 

notice that such amount is due and payable. The relevant Clearing Members (or their Exercise 

Delegation Beneficiaries, as applicable) shall have enforcement rights as against each other 

pursuant to the Contracts (Rights of Third Parties) Act 1999 in respect of any resulting 

payments and deliveries; LCH SA shall have no liability in respect thereof.

If the Clearing Members have entered into such a transaction following the delivery of an 

Exercise Notice and those Clearing Members wish to clear such transaction through LCH SA, 

those Clearing Members will each need to submit such transaction for clearing as an Index 

Cleared Transaction pursuant to Part B of this CDS Clearing Supplement. 

6.9 Cleared Transaction Exercise Reports

Without prejudice to the notification requirements set out elsewhere in the CDS Clearing 

Documentation, LCH SA will communicate to the relevant Clearing Members, on the basis of 

information received from Clearing Members the aggregate Swaption Notional Amounts of 

Exercise Cleared Transactions to which they are a party as Swaption Buyer in respect of which 

Exercise Notices and Abandonment Notices have been delivered and the aggregate Swaption 

Notional Amounts of Exercise Cleared Transactions to which they are a party as Swaption 
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Seller in respect of which Exercise Notices and Abandonment Notices have been delivered, in 

each case on an ongoing basis on the Expiration Date, through the reports referred to in 

Section 5 of the Procedures with the final report being published as soon as practicable after 

LCH SA has confirmed with the relevant Clearing Members that all Exercise Notices and 

Abandonment Notices have been identified. 

For the avoidance of doubt, such communication shall not affect the validity or effectiveness 

of any Exercise or Abandonment which shall be subject to the terms of the relevant Exercise 

Cleared Transaction and the 2006 Definitions.

6.10 Clearing Member Communications Failure Event and CCM Client Communications Failure 

Event

(a) Right to deliver Swaption Notices manually following Clearing Member 

Communications Failure Event

If a Clearing Member or its Exercise Delegation Beneficiary is affected by a significant 

communications or information technology failure resulting in it being impossible or 

impractical for such Clearing Member or Exercise Delegation Beneficiary to deliver or 

receive any Exercise Notice or Abandonment Notice in relation to an Expiration Date 

via the EEP (a Clearing Member Communications Failure Event) it shall, 

notwithstanding Section 6.3 (Exercise and Abandonment by way of EEP), deliver and 

receive Swaption Notices to and from LCH SA in accordance with the provisions for 

the delivery of notices at Section 8 (Delivery of Notices) hereof and the terms of the 

relevant Exercise Cleared Transaction (and, in the case of a CCM Client Cleared 

Transaction, in accordance with Mandatory Provision 5.7 (CCM Client Communications 

Failure Event)) and not via the EEP.

(b) Processing of Swaption Notices by LCH SA in case of Clearing Member 

Communications Failure Event or CCM Client Communications Failure Event

(i) In case of Clearing Member Communications Failure Event or CCM Client 

Communications Failure Event affecting a Matched Buyer

Upon receipt of a Swaption Notice delivered by a Clearing Member (or its 

Exercise Delegation Beneficiary) in accordance with Section 6.10(a) above or 

(in respect of a CCM Client Cleared Transaction) a Swaption Notice delivered 

by a CCM Client in accordance with Mandatory Provision 5.7 (CCM Client 

Communications Failure Event), LCH SA shall, as soon as reasonably practicable, 

submit via the EEP, on behalf of such Clearing Member or Exercise Delegation 

Beneficiary, an Option Intent conforming to such Swaption Notice. Provided 

that (A) the Submission Time for such Option Intent is prior to the Submission 

Deadline and (B) LCH SA has completed those steps necessary to make such 

Option Intent available for viewing in the EEP, including validation of the EEP 

Controls, such Option Intent shall be deemed to constitute the delivery by the 

relevant Clearing Member or Exercise Delegation Beneficiary (as applicable) of 

a valid Exercise Notice or Abandonment Notice (as applicable). The deemed 
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time of delivery of the relevant Swaption Notice shall be the Submission Time 

specified by the EEP in respect of such Option Intent. 

Notwithstanding the above, in respect of any Swaption Notice delivered 

pursuant to Section 6.10(a) above or (in the case of a CCM Client Cleared 

Transaction) pursuant to Mandatory Provision 5.7 (CCM Client Communications 

Failure Event), LCH SA may determine in its sole discretion that it is not able to 

submit the relevant Option Intent in the relevant system prior to the 

Submission Deadline on the Expiration Date. In such case, LCH SA will inform 

the relevant Clearing Member or Exercise Delegation Beneficiary and such 

Clearing Member or Exercise Delegation Beneficiary will be deemed not to have 

submitted an Option Intent in respect of the relevant Exercise Cleared 

Transaction and the provisions of Sections 6.7 and 6.8 shall apply. 

In respect of any Swaption Notice delivered pursuant to Section 6.10(a) above 

or (in the case of a CCM Client Cleared Transaction) pursuant to Mandatory 

Provision 5.7 (CCM Client Communications Failure Event), LCH SA may, in its 

sole discretion, elect to register the Exercise or Abandonment of an Exercise 

Cleared Transaction in an alternative internal system of LCH SA in which case 

the terms 'EEP', 'Option Intent', 'Submission Time' and 'EEP Controls' shall be 

interpreted accordingly mutatis mutandis.

(ii) In case of Clearing Member Communications Failure Event or CCM Client 

Communications Failure Event affecting a Matched Seller

If a Clearing Member (or its FCM/BD Client as Exercise Delegation Beneficiary) 

is subject to a Clearing Member Communications Failure Event duly notified to 

LCH SA in accordance with Section 6.10(c) below, or (in respect of a CCM Client 

Cleared Transaction) CCM Client as Exercise Delegation Beneficiary is subject 

to a CCM Client Communications Failure Event duly notified to LCH SA in 

accordance with Mandatory Provision 5.7(b) (Client to notify LCH SA of 

occurrence of CCM Client Communications Failure Event), any Exercise (in 

whole or in part) or Abandonment of an Exercise Cleared Transaction of an 

Exercise Matched Pair to which such Clearing Member is a party as Matched 

Seller shall be notified to such Matched Seller (and its Exercise Delegation 

Beneficiary if applicable) by LCH SA as soon as reasonably practicable in 

accordance with the provisions for the delivery of notices at Section 8 (Delivery 

of Notices) hereof.

(c) Clearing Member or Exercise Delegation Beneficiary to notify LCH SA of Occurrence 

of Clearing Member Communications Failure Event

Following the occurrence of a Clearing Member Communications Failure Event (or, in 

respect of a CCM Client Cleared Transaction, a CCM Client Communications Failure 

Event), the affected Clearing Member or Exercise Delegation Beneficiary shall, as soon 

as reasonably practicable and, in any event, prior to or at the same time as delivering 

any Swaption Notice to LCH SA in accordance with Section 6.10(a) above, deliver to

LCH SA a notice (in the form set out at Appendix VI hereto) signed by an authorised 
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signatory of such Clearing Member (or its Exercise Delegation Beneficiary) certifying 

that such Clearing Member (or Exercise Delegation Beneficiary) is affected by a 

Clearing Member Communications Failure Event or CCM Client Communications 

Failure Event (or, if such Clearing Member or Exercise Delegation Beneficiary is unable 

to deliver such notice in writing, orally by telephone).

(d) Notification of Resolution of Clearing Member Communications Failure Event

As soon as reasonably practicable upon a Clearing Member (or its FCM/BD Client as 

Exercise Delegation Beneficiary, if applicable) ceasing to be subject to a Clearing 

Member Communications Failure Event (or, in respect of a CCM Client as Exercise 

Delegation Beneficiary, a CCM Client Communications Failure Event), it shall notify 

LCH SA accordingly in the form set out at Appendix VII hereto, such notice to be signed 

by an authorised signatory (or, if such Clearing Member or Exercise Delegation 

Beneficiary is unable to deliver such notice in writing, orally by telephone) and 

thereupon Section 6.3 (Exercise and Abandonment by way of EEP) shall apply and, 

accordingly, any Swaption Notice thereafter delivered or purported to be delivered by 

such Clearing Member (or its Exercise Delegation Beneficiary) directly (and not via the 

EEP) will not be valid and effective.

(e) Clearing Member Duty to Mitigate

A Clearing Member which is subject to a Clearing Member Communications Failure 

Event shall use reasonable endeavours to mitigate the operational impact on other 

Clearing Members and LCH SA of any Clearing Member Communications Failure Event, 

to cure such Clearing Member Communications Failure Event as soon as reasonably 

practicable and to ensure that the circumstances giving rise to the relevant Clearing 

Member Communications Failure Event do not recur.

7. SETTLEMENT 

7.1 Creation of Index Cleared Transactions

Notwithstanding and in addition to any Initial Single Name Cleared Transaction(s) or 

Restructuring Cleared Transaction(s) created pursuant to Section 7.2 (Creation of Initial Single 

Name Cleared Transactions for Settlement purposes in respect of Credit Events other than 

M(M)R Restructuring), Section 7.3 (Creation of Restructuring Cleared Transactions for 

Triggering and/or Settlement purposes) or Section 7.4 (Creation of Initial Single Name Cleared 

Transactions in respect of untriggered M(M)R Restructuring) below, following Exercise an 

Index Cleared Transaction shall be deemed to have been entered into between each Clearing 

Member and LCH SA on the terms of the Underlying Index Transaction to which the relevant 

Exercise Cleared Transactions relate. Such Index Cleared Transaction shall reference the 

currently Eligible Underlying Index Transaction Version as of the Expiration Date of the index 

referenced by the relevant Underlying Index Transaction. Subject to the below, such Index 

Cleared Transaction shall be entered into by LCH SA and the relevant Clearing Member on 

the terms of the Index Cleared Transaction Confirmation (as defined in Part B of the CDS 

Clearing Supplement).
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Each such Index Cleared Transaction shall have a Floating Rate Payer Calculation Amount 

equal to: 

(a) subject to (b) below, the Swaption Notional Amount of the Exercise Cleared 

Transaction from which such Index Cleared Transaction resulted; or 

(b) if the Exercise Cleared Transaction from which such Index Cleared Transaction 

resulted was exercised in part, the portion of the Swaption Notional Amount of the 

Exercise Cleared Transaction that was exercised.

The provisions of this Part C of the CDS Clearing Supplement shall cease to apply to such Index 

Cleared Transaction upon its creation and such Index Cleared Transaction shall instead be 

subject to and cleared in accordance with Part B of this CDS Clearing Supplement; provided, 

however, that: 

(i) an Initial Payment Amount shall be payable under such Index Cleared Transaction which 

shall be an amount equal to, and payable by the party that would be required to pay, the 

Settlement Payment (or the absolute value thereof, as applicable) that would be 

determined in respect of the Exercise Cleared Transaction from which such Index Cleared 

Transaction is created in accordance with the provisions of the Exercise Cleared 

Transaction (as amended by Section 2.2 (Index Swaption Cleared Transaction 

Confirmation) hereof). The Initial Payment Date in respect of such Initial Payment 

Amount shall be the Transaction Business Day (determined pursuant to paragraph (a)(i)

of the definition of Transaction Business Day as if such payment were the Settlement 

Payment) immediately following the Expiration Date; and 

(ii) the paragraph entitled 'Successors' of the iTraxx® Swaption Standard Terms Supplement

shall continue to apply to such Index Cleared Transaction.

Following the creation of such Index Cleared Transaction and any Initial Single Name Cleared 

Transaction(s) and Restructuring Cleared Transaction(s) created pursuant to Section 7.2

(Creation of Initial Single Name Cleared Transactions for Settlement purposes in respect of 

Credit Events other than M(M)R Restructuring), Section 7.3 (Creation of Restructuring Cleared 

Transactions for Triggering and/or Settlement purposes) and Section 7.4 (Creation of Initial 

Single Name Cleared Transactions in respect of untriggered M(M)R Restructuring) below, the 

Exercise Cleared Transaction from which it was created shall be terminated.

7.2 Creation of Initial Single Name Cleared Transactions for Settlement purposes in respect of 

Credit Events other than M(M)R Restructuring 

If a DC Credit Event Announcement has been made on or after the Credit Event Backstop Date 

which would be applicable to a Component Transaction of the Underlying Index Transaction 

of an Exercise Cleared Transaction (other than in respect of an M(M)R Restructuring and 

subject to the operation of the paragraph entitled 'Operation of each Underlying Swap 

Transaction' of the iTraxx® Swaption Standard Terms Supplement or, as the case may be, of 

the paragraph entitled 'Operation of Underlying Swap Transaction' of the CDX Swaption 

Standard Terms Supplement) and the Auction Final Price Determination Date that would have 

been applicable to such Credit Event fell prior to the Expiration Date, then following Exercise 

an Initial Single Name Cleared Transaction (as defined in Part B of this CDS Clearing 
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Supplement) shall be deemed to have been entered into on the Expiration Date between 

each Clearing Member and LCH SA on the terms of the Component Transaction (subject as 

set out below) in respect of the relevant Reference Entity of the Underlying Index 

Transaction. Subject to the below, such Initial Single Name Cleared Transaction shall be 

entered into by LCH SA and the relevant Clearing Member on the terms of the Single Name 

Cleared Transaction Confirmation (as defined in Part B of the CDS Clearing Supplement).

Each such Initial Single Name Cleared Transaction shall have a Floating Rate Payer Calculation 

Amount equal to: 

(a) the Swaption Notional Amount of the Exercise Cleared Transaction from which such 

Initial Single Name Cleared Transaction resulted multiplied by the 'Reference Entity 

Weighting' (under the Underlying Index Transaction referenced by such Exercise 

Cleared Transaction) of the relevant Reference Entity; multiplied by

(b) the Exercise Percentage.

The provisions of this Part C of the CDS Clearing Supplementshall cease to apply to such Initial 

Single Name Cleared Transaction upon its creation and such Initial Single Name Cleared 

Transaction shall instead be subject to and cleared in accordance with Part B of this CDS 

Clearing Supplement; provided, however, that:

(i) the paragraph entitled 'Operation of each Underlying Swap Transaction' and the 

paragraph entitled 'Successors' of the iTraxx® Swaption Standard Terms Supplement or, 

as the case may be, the paragraph entitled 'Operation of Underlying Swap Transaction' 

of the CDX Swaption Standard Terms Supplement shall continue to apply to such Initial 

Single Name Cleared Transaction; and 

(ii) notwithstanding (i) above, the Auction Settlement Date in respect of such Initial Single 

Name Cleared Transaction shall be the later of (x) the Auction Settlement Date that 

would be determined in accordance with Section 6.3 of the 2014 ISDA Credit Derivatives 

Definitions and (y) the first Transaction Business Day following the Expiration Date. 

7.3 Creation of Restructuring Cleared Transactions for Triggering and/or Settlement purposes

If: 

(a) a DC Credit Event Announcement has been made on or after the Credit Event 

Backstop Date in respect of an M(M)R Restructuring which would be applicable to a 

Component Transaction of the Underlying Index Transaction of an Exercise Cleared 

Transaction (subject to the operation of the paragraph entitled 'Operation of each 

Underlying Swap Transaction' of the iTraxx® Swaption Standard Terms Supplement); 

and

(b) either the CEN Triggering Period has not expired or, if the CEN Triggering Period has 

expired, a valid Credit Event Notice was delivered in respect of such M(M)R 

Restructuring prior to its expiry, 

then following Exercise a Restructuring Cleared Transaction (as defined in Part B of this CDS 

Clearing Supplement) shall be deemed to have been entered into on the Expiration Date 
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between each Clearing Member and LCH SA on the terms of the Component Transaction 

(subject as set out below) in respect of the relevant Reference Entity of the Underlying Index 

Transaction and any Credit Event Notice or Notice to Exercise Movement Option validly 

delivered in respect of the Swaption Restructuring Cleared Transaction from which such 

Restructuring Cleared Transaction is created shall be deemed to have been validly delivered 

in respect of such Restructuring Cleared Transaction by CDS Buyer and/or CDS Seller (as 

applicable). Subject to the below, such Restructuring Cleared Transaction shall be entered 

into by LCH SA and the relevant Clearing Member on the terms of the Single Name Cleared 

Transaction Confirmation (as defined in Part B of the CDS Clearing Supplement).

Such Restructuring Cleared Transaction shall have a Floating Rate Payer Calculation Amount 

equal to (x) the SRMP Triggerable Amount (for the relevant M(M)R Restructuring) of the 

Swaption Restructuring Cleared Transaction from which such Restructuring Cleared 

Transaction is created multiplied by (y) the Exercise Percentage. 

The provisions of this Part C of the CDS Clearing Supplement shall cease to apply to such 

Restructuring Cleared Transaction upon its creation and such Restructuring Cleared 

Transaction shall instead be subject to and cleared in accordance with Part B of this CDS 

Clearing Supplement; provided, however, that:

(i) the paragraph entitled 'Operation of each Underlying Swap Transaction' and the paragraph 

entitled 'Successors' of the iTraxx® Swaption Standard Terms Supplement shall continue 

to apply to such Restructuring Cleared Transaction; and 

(ii) notwithstanding (i) above, the Auction Settlement Date in respect of such Restructuring 

Cleared Transaction (if a valid Credit Event Notice is delivered or deemed to be delivered 

in respect of such Restructuring Cleared Transaction) shall be the later of (x) the Auction 

Settlement Date applicable to such Restructuring Cleared Transaction pursuant to Part B 

of the CDS Clearing Supplement and (y) the first Transaction Business Day following the 

Expiration Date.

7.4 Creation of Initial Single Name Cleared Transactions in respect of untriggered M(M)R 

Restructuring 

If: 

(a) a DC Credit Event Announcement has been made that an M(M)R Restructuring Credit 

Event occurred on or after the Credit Event Backstop Date which would be applicable 

to a Component Transaction of the Underlying Index Transaction of an Exercise 

Cleared Transaction (subject to the operation of the paragraph entitled 'Operation of 

each Underlying Swap Transaction' of the iTraxx® Swaption Standard Terms 

Supplement); and 

(b) no valid Credit Event Notice was delivered in respect of such M(M)R Restructuring 

prior to the expiry of the applicable CEN Triggering Period, 

then following Exercise, an Initial Single Name Cleared Transaction (as defined in Part B of 

this CDS Clearing Supplement) shall be deemed to have been entered into on the Expiration 

Date between each Clearing Member and LCH SA on the terms of the Component Transaction 
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(subject as set out below) in respect of the relevant Reference Entity of the Underlying Index 

Transaction. Subject to the below, such Initial Single Name Cleared Transaction shall be 

entered into by LCH SA and the relevant Clearing Member on the terms of the Single Name 

Cleared Transaction Confirmation (as defined in Part B of the CDS Clearing Supplement). 

Each such Initial Single Name Cleared Transaction shall have a Floating Rate Payer Calculation 

Amount equal to: 

(a) the Swaption Notional Amount of the Exercise Cleared Transaction from which such 

Initial Single Name Cleared Transaction resulted multiplied by the 'Reference Entity 

Weighting' (under the Underlying Index Transaction referenced by such Exercise 

Cleared Transaction) of the relevant Reference Entity; multiplied by

(b) the Exercise Percentage.

The provisions of this Part C of the CDS Clearing Supplement shall cease to apply to such Initial 

Single Name Cleared Transaction upon its creation and such Initial Single Name Cleared 

Transaction shall instead be subject to and cleared in accordance with Part B of this CDS 

Clearing Supplement; provided, however, that the paragraph entitled 'Successors' of the 

iTraxx® Swaption Standard Terms Supplement shall continue to apply to such Initial Single 

Name Cleared Transaction. 

8. DELIVERY OF NOTICES 

8.1 General Rules relating to Notices

(a) Methods of Delivery and deemed Time of Delivery

Subject to Sections 6.3 (Exercise and Abandonment by way of EEP) and 6.5(b)(b)(iv)

and without prejudice to Section 1.38 (Requirements Regarding Notices) of the 2014 

ISDA Credit Derivatives Definitions and the remaining provisions of the 2014 ISDA 

Credit Derivatives Definitions and of the 2006 Definitions (including, for the avoidance 

of doubt, in relation to notices permitted to be given orally), any notice or other 

communication in respect of any Cleared Transaction may be given in any manner 

described below and will be deemed effective as indicated:

(i) if delivered in person or by courier, on the date and at the time it is delivered;

(ii) if sent by facsimile transmission, on the date it is received by a responsible 

employee of the recipient in legible form (it being agreed that the burden of 

proving receipt will be on the sender and will not be met by a transmission 

report generated by the sender’s facsimile machine);

(iii) if sent by certified or registered mail (airmail, if overseas) or the equivalent 

(return receipt requested), on the date it is delivered or its delivery is 

attempted; or

(iv) if sent by electronic messaging system (including e-mail or any other electronic 

access solution established by LCH SA for such purpose), on the date it is 

received,
LCH SA © 2021 267 Published on 30 July 2021[●]

unless the date of that delivery (or attempted delivery) or that receipt, as applicable, 

is not a Transaction Business Day or that communication is delivered (or attempted) 

or received, as applicable, pursuant to the above after 6.00 p.m. in the location of the 

recipient on a Transaction Business Day, in which case that communication will be 

deemed given and effective on the first following day that is a Transaction Business 

Day.

(b) Notices from or to LCH SA

Any such notice or communication given by LCH SA to a Clearing Member or vice versa

shall (except where given via the EEP in accordance with Section 6.3 (Exercise and 

Abandonment by way of EEP)) be given to the address or number previously specified 

in or previously notified for the relevant purpose in accordance with the CDS 

Admission Agreement or the Procedures.

In the case of the occurrence of an EEP Failure Event, any notice or communication 

given by LCH SA to a Client of a Clearing Member as its Exercise Delegation Beneficiary 

or vice versa shall be given to the address or number provided by such Client or its 

Clearing Member to LCH SA and vice versa when the relevant Clearing Member 

registered such Client for the clearing of Index Swaption Cleared Transactions, or any 

other address or number duly notified thereafter by the such Client to LCH SA or vice 

versa.

(c) Notices between Clearing Members

Notices given by a Clearing Member to another Clearing Member (or their respective 

Exercise Delegation Beneficiaries) comprised in a relevant Matched Pair shall be given 

to the address or number notified by LCH SA to the deliver or pursuant to Section 5.1 

(Creation and Notification of Swaption Restructuring Matched Pairs) or in a Protected 

Exercise Matched Pair Report pursuant to Section 6.1 (Creation and Notification of 

Exercise Matched Pairs) and Section 6.5(a)(ii) (Access to the Protected Exercise 

Matched Pair Report), as applicable. 

Such notices shall only be deemed to be delivered effectively by LCH SA through the 

relevant Clearing Member as its designee (acting itself or through such Clearing 

Member's Exercise Delegation Beneficiary, if applicable) as against the recipient 

where the address or number so notified by LCH SA corresponds in all material 

respects to the address or number, as applicable, specified by such recipient in or 

pursuant to the CDS Admissions Agreement.

(d) No Obligation on LCH SA to verify Signatories

LCH SA shall have no obligation to verify the authority of any signatory of any notice 

delivered by any Clearing Member pursuant to this Section 8 (Delivery of Notices).

8.2 Failure to notify Matched Pairs

Notwithstanding Section 5.3 (Triggering of Swaption Restructuring Cleared Transactions) or 

Section 6.5(b) (Consequences of EEP Failure), if LCH SA does not notify the relevant Clearing 
LCH SA © 2021 268 Published on 30 July 2021[●]

Members of Swaption Restructuring Matched Pairs and related information specified in 

Section 5.1 (Creation and Notification of Swaption Restructuring Matched Pairs) by the SRMP 

Notification Deadline or provide the Protected Exercise Matched Pair Report by the EMP 

Notification Deadline (as applicable) (or, where Section 6.5(b) (Consequences of EEP Failure) 

is applicable as a result of the occurrence of an EEP Failure Event that occurs after the EMP 

Notification Deadline, from the time of such EEP Failure Event until such time as LCH provides 

the Protected Exercise Matched Pair Report): 

(a) the relevant Clearing Members may deliver Credit Event Notices and Notices to 

Exercise Movement Options in respect of their Swaption Restructuring Cleared 

Transaction to LCH SA and vice versa; 

(b) if Section 6.5(b) (Consequences of EEP Failure) is applicable as a result of the 

occurrence of an EEP Failure Event, the relevant Clearing Members (or their Exercise 

Delegation Beneficiaries as their designees if applicable) may deliver Swaption 

Notices in respect of their Exercise Cleared Transaction to LCH SA, and vice versa; and 

(c) the provisions of Section 9 (Matched Pair Designations) shall not apply and the terms 

of this CDS Clearing Supplement shall be construed accordingly. 

8.3 Oral Notices

Notwithstanding the provisions of the 2006 Definitions and of the 2014 ISDA Credit 

Derivatives Definitions and any other provision hereof, where Swaption Notices, Credit Event 

Notices and Notices to Exercise Movement Option are to be delivered directly to LCH SA, such 

notices may not be delivered orally or by telephone.

8.4 Disputes as to Notices

If any Clearing Member comprised in a Matched Pair where one such party is acting as 

designee of LCH SA disputes the effective delivery in accordance with the terms of the 

relevant Cleared Transactions of any notice delivered directly between Clearing Members

pursuant to Section 5 (Restructuring) or Section 6.5(b) (Consequences of EEP Failure):

(a) LCH SA shall be entitled in accordance with the Procedures to calculate and call for 

Margin with respect to each such Clearing Member on the basis of the maximum 

requirement for such Clearing Member that could result from any foreseeable 

outcome of such dispute;

(b) following final resolution of such dispute by arbitration or by litigation, as applicable, 

in accordance with the CDS Dispute Resolution Protocol, subject to the provisions of 

Sections 8 and 9 of the Procedures, the Clearing Members comprised in the relevant 

Matched Pair shall take such actions with respect to the affected Exercise Cleared

Transactions or Swaption Restructuring Cleared Transactions, as the case may be, the 

subject of such dispute as LCH SA determines appropriate to give effect to any 

relevant binding resolution; and

(c) without prejudice to its obligations upon final resolution of the dispute, pending final 

resolution of any such dispute, LCH SA shall not be obliged to take any step pursuant 
LCH SA © 2021 269 Published on 30 July 2021[●]

to the terms of the relevant Exercise Cleared Transactions or Swaption Restructuring 

Cleared Transactions which would be required to have been taken by it had the 

relevant notice been validly delivered.

Each relevant Clearing Member must promptly notify LCH SA of any such disputes (in the 

form set out at Appendix V hereto).

9. MATCHED PAIR DESIGNATIONS

9.1 Creation of Matched Pairs

LCH SA will create Matched Pairs where required to do so pursuant to Section 5.1 (Creation 

and Notification of Swaption Restructuring Matched Pairs) and Section 6.1 (Creation and 

Notification of Exercise Matched Pairs) using a matching procedure that matches Swaption 

Sellers with Swaption Buyers pursuant to an algorithm incorporating the following principles:

(a) the procedure seeks to create Matched Pairs between the same Clearing Member to 

the extent it is possible to do so before creating Matched Pairs between different 

Clearing Members and, for this purpose, in the context of CCMs, the procedure will 

create Matched Pairs separately for CCMs and their CCM Clients (individually where

the CCM Client is allocated to a single CCM Client Margin Account or together where 

a set of CCM Clients is allocated to a single CCM Client Margin Account) and Clearing 

Member will be construed accordingly;

(b) the procedure seeks to minimise the number of Matched Pairs (and accordingly, 

largest positions will be matched first);

(c) each Matched Pair will, to the extent possible, have an aggregate Swaption 

Restructuring Matched Pair Amount or Exercise Matched Pair Amount (as applicable), 

which meets the criteria as set out in a Clearing Notice; and

(d) LCH SA will allocate a Matched Pair Amount to each Matched Pair such that:

(i) the sum of all Swaption Restructuring Matched Pair Amounts or Exercise 

Matched Pair Amounts (as applicable) of each Swaption Buyer under the 

Swaption Restructuring Cleared Transactions or Exercise Cleared 

Transactions matched on the relevant date pursuant to this Section 9.1 is 

equal to the aggregate of the Swaption Notional Amounts of the Index 

Swaption Cleared Transactions to which such Swaption Buyer is a party 

which are to be matched on such date pursuant to this Section 9.1; and 

(ii) the sum of all Swaption Restructuring Matched Pair Amounts or Exercise 

Matched Pair Amounts (as applicable) of each Swaption Seller under the 

Swaption Restructuring Cleared Transactions or Exercise Cleared 

Transactions matched on the relevant date pursuant to this Section 9.1 is 

equal to the aggregate of the Swaption Notional Amounts of the Index 

Swaption Cleared Transactions to which such Swaption Seller is a party 

which are to be matched on such date pursuant to this Section 9.1.
LCH SA © 2021 270 Published on 30 July 2021[●]

9.2 Registration of new Swaption Restructuring Cleared Transactions and Exercise Cleared 

Transactions and Removal of original Index Swaption Cleared Transactions 

To the extent that any Swaption Restructuring Cleared Transaction created pursuant to 

Section 5.2 (Creation of Swaption Restructuring Cleared Transaction) or any Exercise Cleared 

Transaction created pursuant to Section 6.2 (Creation of Exercise Cleared Transactions) is not 

automatically registered in accordance with the DTCC Rules, LCH SA shall register such new 

Swaption Restructuring Cleared Transaction or Exercise Cleared Transaction (as applicable) 

in the TIW in accordance with the DTCC Rules prior to 6.00 p.m. on the date on which the 

SRMP Notification Deadline or EMP Notification Deadline (as applicable) falls. In respect of 

CCMs and CCM Clients only, such registration by LCH SA shall also result in the automatic 

registration of any amendments made to the corresponding CCM Client Transactions. 

In addition, LCH SA will, on behalf of the relevant Clearing Member, send an “Exit” message 

to the TIW in accordance with the DTCC Rules to terminate and remove the corresponding 

original Index Swaption Cleared Transactions from which such Swaption Restructuring 

Cleared Transactions or Exercise Cleared Transactions were created from the TIW prior to 

10.00 p.m. on the date on which the SRMP Notification Deadline or EMP Notification Deadline 

(as applicable) falls. 

9.3 Resetting of Swaption Trade Date

If LCH SA determines in respect of any Swaption Restructuring Cleared Transaction created 

pursuant to Section 5.2 (Creation of Swaption Restructuring Cleared Transactions) or any 

Exercise Cleared Transaction created pursuant to Section 6.2 (Creation of Exercise Cleared 

Transactions) that the Swaption Trade Date for such Swaption Restructuring Cleared 

Transaction or Exercise Cleared Transaction would be after a DC Announcement Coverage 

Cut-off Date whereas the Swaption Trade Date for the Cleared Transaction(s) from which 

such Swaption Restructuring Cleared Transaction or Exercise Cleared Transaction was created 

would have been prior to such DC Announcement Coverage Cut-off Date, LCH SA shall take 

such action as it deems necessary to ensure that such DC Credit Event Announcement is 

applicable to such Swaption Restructuring Cleared Transaction or Exercise Cleared 

Transaction, including, without limitation, specifying an earlier Swaption Trade Date for such 

Swaption Restructuring Cleared Transaction or Exercise Cleared Transaction.

9.4 Matched Buyer and Seller Contracts

(a) In respect of each Matched Buyer Contract which is the subject of a Matched Pair, 

LCH SA, pursuant to Section 11.2(c)(iv) of the 2014 ISDA Credit Derivatives Definitions 

(amended as set out at Section 2.3 (Amendments to 2014 ISDA Credit Derivatives 

Definitions)), as designator, shall be deemed to have designated Matched Seller in 

such Matched Pair as its designee to receive on its behalf from, and to deliver on its 

behalf to, Matched Buyer of the Matched Pair any applicable notices or certifications)

in accordance with the terms of the applicable Cleared Transaction (including, 

without limitation, Exercise Notices and Abandonment Notices).

(b) In respect of each Matched Seller Contract which is the subject of a Matched Pair, 

LCH SA, pursuant to Section 11.2(c)(iv) of the 2014 ISDA Credit Derivatives Definitions 

(as amended pursuant to Section 2.3 (Amendments to 2014 ISDA Credit Derivatives 
LCH SA © 2021 271 Published on 30 July 2021[●]

Definitions) above), as designator, shall be deemed to have designated Matched 

Buyer in such Matched Pair as its designee to receive on its behalf from, and to deliver 

on its behalf to, Matched Seller of the Matched Pair any applicable notices or 

certifications) in accordance with the terms of the applicable Cleared Transaction 

(including, without limitation, Exercise Notices and Abandonment Notices).

9.5 Exercise of Rights

In relation to each Matched Pair:

(a) the exercise of any rights by Matched Buyer against LCH SA under a Matched Buyer 

Contract shall be deemed to constitute the exercise of equal and simultaneous rights 

by LCH SA against Matched Seller under the Matched Seller Contract of the relevant 

Matched Pair; and

(b) the exercise of any rights by Matched Seller against LCH SA under a Matched Seller 

Contract shall be deemed to constitute the exercise of equal and simultaneous rights 

by LCH SA against Matched Buyer under the Matched Buyer Contract of the relevant 

Matched Pair.

9.6 Clearing Member matched with Itself

In the event that Matched Buyer and Matched Seller of a Matched Pair pursuant to this 

Section 9 (Matched Pair Designations) is the same Clearing Member, such Clearing Member 

shall be deemed to have sent a notice from itself in its role as Matched Buyer to itself in its 

role as Matched Seller (and vice versa) upon such Clearing Member sending a Clearing 

Member Notice to LCH SA pursuant to Section 5.7 (a) (Duty to deliver Swaption Restructuring 

Clearing Member Notices) or Section 6.5(c) (Duty to deliver Swaption Clearing Member 

Notices) above in respect of such notice.

9.7 Notices

In relation to each Matched Pair:

(a) where Matched Buyer validly delivers or serves any notice to Matched Seller as 

designee of LCH SA in accordance with the terms of a relevant Matched Buyer 

Contract, such notice shall additionally be effective as a notice given by such Matched 

Buyer as designee of LCH SA to Matched Seller for the purposes of the relevant

Matched Seller Contract; and

(b) where Matched Seller validly delivers or serves any notice to Matched Buyer as 

designee of LCH SA in accordance with the terms of a relevant Matched Seller 

Contract, such notice shall additionally be effective as a notice given by such Matched 

Seller as designee of LCH SA to Matched Buyer for the purposes of the relevant 

Matched Buyer Contract.

10. MANDATORY PROVISIONS FOR CCM CLIENT TRANSACTIONS

In Appendix VIII, certain provisions are set-out (the "Mandatory Provisions") for 

incorporation into a CCM Client Transaction between a CCM and its CCM Client that 
LCH SA © 2021 272 Published on 30 July 2021[●]

corresponds to a CCM Client Cleared Transaction registered in the CCM Client Trade Account 

in the name of such CCM for such CCM Client. The CDS Clearing Supplement and these 

Mandatory Provisions have been drafted so as to complement each other. 

LCH SA shall not be responsible for any loss suffered or expense incurred by a CCM or any 

CCM Client as a result of the inclusion or non-inclusion of the Mandatory Provisions in the 

CCM Client Transaction Documents.

11. AMENDMENTS

LCH SA may amend the provisions of this CDS Clearing Supplement (including, without 

limitation, the Mandatory Provisions) from time to time so as to comply with any legal or 

regulatory developments or any recommendations adopted by the industry in respect of 

CDS, Swaptions or Cleared Transactions or CCM Client Transactions, as applicable, or so as to 

reflect any technological advancements, in each case in accordance with the provisions of 

Section 1.2.2 (Modification) of Chapter 2 (General Provisions) of the CDS Clearing Rule Book. 

12. FORMS OF NOTICES

A form of Exercise Notice, Abandonment Notice, Credit Event Notice, Notice to Exercise 

Movement Option, notice of dispute relating to any Matched Pair as contemplated by Section 

8.4 (Disputes as to Notices) is set out in Appendix I, II, III, IV and V respectively hereto. 

Any of the above referenced notices shall be delivered in substantially the form appended 

hereto, provided, for the avoidance of doubt, that such notices may refer to multiple 

transactions and may have certain firm-specific variations.

For the avoidance of doubt, the above referenced notices shall be governed by and construed 

in accordance with English law.

13. EXCLUSION OF LIABILITY

Without prejudice to the provisions of Article 1.2.10.3 of the CDS Clearing Rule Book:

(a) No liability for Failure of Designee to perform in respect of Matched Pair

Without prejudice to its obligations under or in respect of a Cleared Transaction, LCH 

SA shall not be liable for any loss or cost arising out of any failure of any Clearing 

Member comprised in a Matched Pair to perform its obligations as designee of LCH SA 

against a related Matched Buyer or Matched Seller, as applicable. 

(b) No liability for Exercise or Abandonment by Exercise Delegation Beneficiary

LCH SA shall have no liability to a Clearing Member which has delegated to an Exercise 

Delegation Beneficiary its power to Exercise or Abandon Exercise Cleared Transactions 

in accordance with Section 6.4 (Delegation by Clearing Members to Clients) above for 

any loss, cost or expense arising out of any failure of such Exercise Delegation 

Beneficiary to perform its obligations in relation to such delegation or in connection 

with or arising from the Exercise or Abandonment (or attempted Exercise or 
LCH SA © 2021 273 Published on 30 July 2021[●]

Abandonment) of an Exercise Cleared Transaction by such Exercise Delegation 

Beneficiary. 

(c) No liability for Fault of Third Party or Force Majeure

LCH SA shall have no liability to any person where Swaption Restructuring Cleared 

Transactions or Exercise Cleared Transactions are not or are improperly created, Index 

Swaption Cleared Transactions, Swaption Restructuring Cleared Transactions or 

Exercise Cleared Transactions are not or are improperly terminated or where the 

Exercise process or the Movement Option process is not or is improperly 

implemented, because of a third party’s fault or a force majeure event. In particular, 

LCH SA shall not incur any liability arising as a result of any action or omission of DTCC. 

(d) No Obligation to verify Notices received

LCH SA shall have no responsibility to verify the contents of any notice received by it 

from any Clearing Member (or from an Exercise Delegation Beneficiary of a Clearing 

Member) under the terms of any Cleared Transaction. 

14. DISPUTE RESOLUTION

For the avoidance of doubt, all Disputes shall be referred to and finally resolved by arbitration 

or by litigation, as applicable, in accordance with the CDS Dispute Resolution Protocol, subject 

to the provisions of Sections 8 and 9 of the Procedures.

15. GOVERNING LAW

For the avoidance of doubt, the governing law applicable to this CDS Clearing Supplement 

(excluding the Mandatory Provisions to the extent that such terms are incorporated by 

reference in the CCM Client Transaction Documents entered into between a CCM and its CCM 

Client in respect of a CCM Client Transaction), the 2014 ISDA Credit Derivatives Definitions, 

the 2006 Definitions and any Cleared Transactions (and any related definitions or Clearing 

Notices issued in respect of the CDS Clearing Supplement, the 2014 ISDA Credit Derivatives 

Definitions, the 2006 Definitions or any Cleared Transactions) and any non-contractual 

obligations arising out of, relating to or having any connection with them shall be as set out 

in Section 1.2.14 (Governing Law) of the CDS Clearing Rule Book.
APPENDIX I: FORM OF EXERCISE NOTICE

To: [Exercise Matched Pair Counterparty Address and Contact Information]

[To/Copy to:]

LCH SA

18, rue du Quatre Septembre

75002 Paris

France

[Contact details]

[Date]

EXERCISE NOTICE: 

Exercise Cleared Transaction Details: As set out in the Schedule hereto1.

Reference is made to the Exercise Cleared Transaction[s] described in the Schedule hereto (the 

Transaction[s]). Capitalised terms used and not otherwise defined in this letter shall have the 

meanings given them in the confirmation of the relevant Transaction and in the CDS Clearing 

Documentation (as defined in such confirmation). 

This letter is our Exercise Notice to you to confirm [our telephonic notice to you today] that we have 

elected to exercise our rights under the Transaction[s] as set out in the Schedule hereto. 

Sincerely 

[Clearing Member]

________________________

Name:

Title:

1 A single Exercise Notice may be submitted for multiple trades in respect of the same Counterparty
SCHEDULE

Exercise Cleared Transaction Details

Exercise 

Matched Pair ID

Underlying 

Index

Swaption 

Type

Expiration 

Date

Swaption 

Notional 

Amount / 

Original 

Notional 

Amount

Amount of 

Original 

Notional 

Amount 

exercised

[⚫] iTraxx® 

Europe 

[index name] 

Series [⚫] 

Version [⚫] 

[Payer / 

Receiver]

[⚫] [⚫] [⚫]

[⚫] CDX [index 

name] Series 

[⚫] Version [

⚫] 

[Payer / 

Receiver]

[⚫] [⚫] [⚫]

The Underlying Index, Swaption Type and Swaption Notional Amount/Original Notional Amount for 

the Transaction[s] have been included in this Exercise Notice for identification purposes only. Any 

error in such items shall not invalidate this Exercise Notice and the Transaction[s] shall be exercised in 

the amount specified above notwithstanding any such error.
APPENDIX II: FORM OF ABANDONMENT NOTICE

To: [Exercise Matched Pair Counterparty Address and Contact Information]

[To/Copy to:]

LCH SA

18, rue du Quatre Septembre

75002 Paris

France

[Contact details]

[Date]

ABANDONMENT NOTICE: 

Exercise Cleared Transaction Details: As set out in the Schedule hereto2.

Reference is made to the Exercise Cleared Transaction[s] described in the Schedule hereto (the 

Transaction[s]). Capitalised terms used and not otherwise defined in this letter shall have the 

meanings given them in the confirmation of the relevant Transaction and in the CDS Clearing 

Documentation (as defined in such confirmation). 

This letter is our Abandonment Notice to you to confirm [our telephonic notice to you today] that we 

have elected not to exercise our rights under the Transaction[s] and that the Transaction[s] shall 

instead be terminated in whole. 

Sincerely 

[Clearing Member]

________________________

Name:

Title:

2 A single Abandonment Notice may be submitted for multiple trades in respect of the same Counterparty
SCHEDULE

Exercise Cleared Transaction Details

Exercise 

Matched Pair ID

Underlying 

Index

Swaption 

Type

Expiration 

Date

Swaption 

Notional 

Amount / 

Original 

Notional 

Amount

[⚫] iTraxx® 

Europe 

[index name] 

Series [⚫] 

Version [⚫] 

[Payer / 

Receiver]

[⚫] [⚫]

[⚫] CDX

[index 

name] 

Series [⚫

] Version 

[⚫] 

[Payer / 

Receiver

]

[⚫] [⚫]

The Underlying Index, Swaption Type and Swaption Notional Amount/Original Notional Amount for 

the Transaction[s] have been included in this Exercise Notice for identification purposes only. Any 

error in such items shall not invalidate this Abandonment Notice and the Transaction[s] shall be 

terminated pursuant to this Abandonment Notice notwithstanding any such error.
APPENDIX III: FORM OF CREDIT EVENT NOTICE

To: [Swaption Restructuring Matched Pair Counterparty Address and Contact Information]

[To/Copy to:]

LCH SA

18, rue du Quatre Septembre

75002 Paris

France

[Contact details]

[Date]

CREDIT EVENT NOTICE: 

Swaption Restructuring Cleared Transaction Details: As set out in the Schedule hereto3.

Reference is made to the Swaption Restructuring Cleared Transaction[s] described in the Schedule 

hereto (the Transaction[s]). Capitalised terms used and not otherwise defined in this letter shall have 

the meanings given them in the confirmation of the relevant Transaction and in the CDS Clearing 

Documentation (as defined in such confirmation). 

This letter is our Credit Event Notice to you that an M(M)R Restructuring occurred with respect to 

[insert name of Reference Entity] on or about [insert date], when [describe Credit Event].

Nothing in this letter shall be construed of a waiver of any rights we may have with respect to the 

Transaction.

Sincerely 

[Clearing Member]

________________________

Name:

Title:

3 A single Credit Event Notice may be submitted for multiple trades in respect of the same Counterparty
SCHEDULE

Swaption Restructuring Cleared Transaction Details

[Clearing

Member] acting 

as CDS 

Seller/Buyer

Swaption 

Restructuring 

Matched Pair ID

Reference 

Entity

Swaption 

Trade Date

Triggered 

Amount4

[Seller]

[Buyer]

[⚫] [⚫] [⚫] [⚫]

4 Where different to the relevant SRMP Triggerable Amount
APPENDIX IV: FORM OF NOTICE TO EXERCISE MOVEMENT OPTION

To: [Swaption Restructuring Matched Pair Counterparty Address and Contact Information]

[To/Copy to:]

LCH SA

18, rue du Quatre Septembre

75002 Paris

France

[Contact details]

[Date]

Dear Sir/Madam 

Notice to Exercise Movement Option

Swaption Restructuring Cleared Transaction Details: As set out in the Schedule hereto5.

Reference is made to: (a) the Swaption Restructuring Cleared Transaction[s] described in the Schedule 

hereto (the Transaction[s]) between [ ], as Matched Seller, and [ ], as Matched Buyer; (b) the 

Credit Event Notice previously delivered to you on [insert date]; and (c) the occurrence of the No 

Auction Announcement Date on [insert date] pursuant to Section 6.11(b) or Section 6.11(c)(ii) of the 

2014 ISDA Credit Derivatives Definitions (the Definitions).

This letter constitutes a Notice to Exercise Movement Option. Any capitalised term not otherwise 

defined in this letter will have the meaning, if any, assigned to such term in the confirmation of the 

relevant Transaction and in the CDS Clearing Documentation (as defined in such confirmation) or, if 

no meaning is specified therein, in the Definitions.

We hereby exercise the Movement Option, confirm that the relevant transaction created from [each 

/ the] Transaction[s] pursuant to Section 7 (Settlement) of Part C of the CDS Clearing Supplement 

following exercise of the Transaction will be settled in accordance with the relevant Credit Derivatives 

Auction Settlement Terms specified in the column entitled "Auction Settlement Terms" corresponding 

to such Transaction in the Schedule hereto and require performance by you in accordance therewith.

Yours faithfully,

[Matched Buyer/Matched Seller]

________________________

Name:

Title:

5 A single Notice to Exercise Movement Option may be submitted for multiple trades in respect of the same 

Counterparty
SCHEDULE

Swaption Restructuring Cleared Transaction Details

Swaption 

Restructuring 

Matched Pair ID

Reference 

Entity

Swaption 

Trade Date

Auction 

Settlement 

Terms

[⚫] [⚫] [⚫] [⚫]
APPENDIX V: FORM OF NOTICE OF DISPUTE RELATING TO ANY SWAPTION RESTRUCTURING / 

EXERCISE MATCHED PAIR

To:

LCH SA

18, rue du Quatre Septembre

75002 Paris

France

[Contact details]

[Date]

[Exercise Matched Pair ID: [⚫]] / [Swaption Restructuring Matched Pair ID: [⚫]]

Trade ID: [⚫]

Dear Sir/Madam 

Notice of dispute relating to [insert details of the relevant Exercise Matched Pairs / Swaption 

Restructuring Matched Pairs subject to a dispute]

Reference is made to Section 8.4 (Disputes as to Notices) of Part C of the CDS Clearing Supplement. 

Defined terms shall have the meanings assigned to them in Part C of the CDS Clearing Supplement, 

unless otherwise defined herein.

In accordance with Section 8.4 (Disputes as to Notices) of Part C of the CDS Clearing Supplement, 

notice is hereby given of the following dispute(s):

[insert details of Exercise Matched Pair(s) / Swaption Restructuring Matched Pair(s) affected and the 

relevant dispute].

This notice (and any dispute, controversy, proceedings or claim of whatever nature arising out of or in 

any way relating to this agreement or its formation) shall be governed by and construed in accordance 

with English law.

Yours faithfully,

[Matched Buyer]/[Matched Seller]

________________________

Name:

Title:
APPENDIX VI: FORM OF NOTICE OF CLEARING MEMBER COMMUNICATIONS FAILURE EVENT 

PURSUANT TO SECTION 6.10 (Clearing Member Communications Failure Event) OR CCM CLIENT 

COMMUNICATIONS FAILURE EVENT PURSUANT TO MANDATORY PROVISION 5.7 (CCM Client 

Communications Failure Event)

To:

LCH SA

18, rue du Quatre Septembre

75002 Paris

France

[Contact details]

[date]

Dear Sir/Madam 

Notice certifying occurrence of a [Clearing Member Communications Failure Event] [CCM Client 

Communications Failure Event]

Reference is made to [Section 6.10(c) (Clearing Member or Exercise Delegation Beneficiary to notify 

LCH SA of Occurrence of Clearing Member Communications Failure Event) of the CDS Clearing 

Supplement] [Mandatory Provision 5.7(b) (Client to notify LCH SA of occurrence of CCM Client 

Communications Failure Event) in respect of the CDS Clearing Supplement]. Defined terms shall have 

the meanings assigned to them in the CDS Clearing Supplement, unless otherwise defined herein.

In accordance with Section 6.10(c) (Clearing Member or Exercise Delegation Beneficiary to notify LCH 

SA of Occurrence of Clearing Member Communications Failure Event) of the CDS Clearing Supplement, 

notice is hereby given that we are affected by a Clearing Member Communications Failure Event 

[insert details of such failure].]

[In accordance with Mandatory Provision 5.7(b) (Client to notify LCH SA of occurrence of CCM Client 

Communications Failure Event) in respect of the CDS Clearing Supplement, notice is hereby given that 

we are affected by a CCM Client Communications Failure Event [insert details of such failure].]

This notice (and any dispute, controversy, proceedings or claim of whatever nature arising out of or in 

any way relating to this agreement or its formation) shall be governed by and construed in accordance 

with English law.

Yours faithfully,

[Clearing Member / Exercise Delegation Beneficiary]

________________________
Name:

Title:

[Signed by a senior officer (such as a managing director or equivalent) on behalf of the Clearing 

Member / Exercise Delegation Beneficiary]
APPENDIX VII: FORM OF NOTICE FOR CEASING TO BE SUBJECT TO A CLEARING MEMBER 

COMMUNICATIONS FAILURE EVENT PURSUANT TO SECTION 6.10 (Clearing Member 

Communications Failure Event) OR CCM CLIENT COMMUNICATIONS FAILURE EVENT PURSUANT TO 

MANDATORY PROVISION 5.7 (CCM Client Communications Failure Event)

To:

LCH SA

18, rue du Quatre Septembre

75002 Paris

France

[Contact details]

[date]

Dear Sir/Madam

Notice of cessation of [Clearing Member Communications Failure Event] [CCM Client 

Communications Failure Event]

Reference is made to Section 6.10(d) (Notification of Resolution of Clearing Member Communications 

Failure Event) of the CDS Clearing Supplement and the notice certifying the occurrence of a Clearing 

Member Communications Failure Event delivered by us to LCH SA on [] (the Notice of Clearing 

Member Communications Failure Event).] [Reference is made to Mandatory Provison 5.7(c) 

(Notification of Resolution of CCM Client Communications Failure Event) in respect of the CDS Clearing 

Supplement and the notice certifying the occurrence of a CCM Client Communications Failure Event 

delivered by us to LCH SA on [] (the Notice of CCM Client Communications Failure Event). Defined 

terms shall have the meanings assigned to them in the CDS Clearing Supplement, unless otherwise 

defined herein.

In accordance with Section 6.10(d) (Notification of Resolution of Clearing Member Communications 

Failure Event) of the CDS Clearing Supplement, notice is hereby given that we are no longer subject to 

the relevant Clearing Member Communications Failure Event described in the Notice of Clearing 

Member Communications Failure Event.

[In accordance with Mandatory Provision 5.7(c) (Notification of Resolution of CCM Client 

Communications Failure Event) in respect of the CDS Clearing Supplement, notice is hereby given that 

we are no longer subject to the relevant CCM Client Communications Failure Event described in the 

Notice of CCM Client Communications Failure Event.]

This notice (and any dispute, controversy, proceedings or claim of whatever nature arising out of or in 

any way relating to this agreement or its formation) shall be governed by and construed in accordance 

with English law.

Yours faithfully,

[Clearing Member / Exercise Delegation Beneficiary]
________________________

Name:

Title:
APPENDIX VIII: CCM CLIENT TRANSACTION REQUIREMENTS

The following provisions (the "Mandatory Provisions") are to be incorporated into a CCM Client 

Transaction between a CCM and its CCM Client that corresponds to a CCM Client Cleared Transaction 

(which is an Index Swaption Cleared Transaction, a Swaption Restructuring Cleared Transaction or an 

Exercise Cleared Transaction) registered in the CCM Client Trade Account in the name of such CCM for 

such CCM Client. The terms of the corresponding CCM Client Cleared Transaction will be governed by 

Part C of the CDS Clearing Supplement. Part C of the CDS Clearing Supplement and these Mandatory 

Provisions have been drafted so as to complement each other.

LCH SA shall not be responsible for any loss suffered or expense incurred by a CCM or any CCM Client 

as a result of the inclusion in the CCM Client Transaction Documents of the requirements set-out in 

this Appendix VIII.

The Mandatory Provisions, when they are incorporated into any CCM Client Transaction Documents, 

shall be governed by and construed in accordance with the governing law applicable to such CCM 

Client Transaction Documents of which they form part, or if different and applicable, in accordance 

with such CCM Client Transaction Documents, the governing law applicable to transactions entered 

into under such CCM Client Transaction Documents. The Mandatory Provisions shall be subject to such 

dispute resolution mechanisms and procedures and such courts or other forum for hearing disputes 

as are applicable in respect of such CCM Client Transaction Documents of which they form part. Each 

CCM and its CCM Client to which the Mandatory Provisions apply will waive any right to object to any 

such choice of law or proceedings on the basis of forum non conveniens, that the governing law or 

forum is not specified on the face of this document or otherwise.

1. Defined Terms

Terms used in the Mandatory Provisions and not otherwise defined herein or in the iTraxx® 

Swaption Standard Terms Supplement or, as the case may be, the CDX Swaption Standard 

Terms Supplement, the 2006 ISDA Definitions or in the 2014 ISDA Credit Derivatives 

Definitions shall have the meanings given to them in Part C of the CDS Clearing Supplement.

2. Terms of CCM Client Transactions

2.1 2006 Definitions and 2014 ISDA Credit Derivatives Definitions

The definitions and provisions contained in the 2006 Definitions and in the 2014 ISDA Credit 

Derivatives Definitions are incorporated into each CCM Client Transaction.

2.2 Premium Payment Date

Notwithstanding anything to the contrary in the 2006 Definitions, if the Premium Payment 

Date specified in the CCM Client Transaction Documents in respect of any CCM Client 

Transaction is a date falling after the Clearing Day on which the Cleared Transactions related 

to such CCM Client Transaction are created by novation pursuant to Title III (Clearing 

Operations) of the CDS Clearing Rule Book, the Premium Payment Date in respect of such 

CCM Client Transaction shall be deemed to be the Transaction Business Day which is also a 

Clearing Day immediately following the Clearing Day on which the Cleared Transactions 

relating to such CCM Client Transaction are created.
2.3 Abandonment Notices

On the Expiration Date, Swaption Buyer may notify Swaption Seller (which such notification 

may be given orally, including by telephone, if notices may generally be given orally pursuant 

to the terms of the CCM Client Transaction) that the CCM Client Transaction specified in such 

notice shall be terminated in whole and that no further amounts shall become due and 

payable by Swaption Buyer to Swaption Seller or vice versa in respect of such CCM Client 

Transaction and that notice will be deemed to be irrevocable (such notice, an "Abandonment 

Notice"). If applicable, Swaption Buyer will execute and deliver to Swaption Seller a written 

confirmation confirming the substance of any telephonic notice within one Exercise Business 

Day of that notice. Failure to provide that written confirmation will not affect the validity of 

the telephonic notice.

2.4 ISDA 2019 NTCE Protocol

The Protocol Effectiveness Condition (as defined in the 2019 NTCE Protocol) being satisfied, 

then from and including the Implementation Date (as defined in the 2019 NTCE Protocol) the 

amendments set forth in Schedule 1 (Amendments) of the 2019 NTCE Protocol shall apply to 

each CCM Client Transaction which incorporates the 2014 ISDA Credit Derivatives Definitions 

and each such CCM Client Transaction shall be a Protocol Covered Transaction for the 

purposes of the 2019 NTCE Protocol provided that:

(a) the date on which the Index Swaption CCM Client Cleared Transaction corresponding 

to such CCM Client Transaction is registered in the TIW is prior to the Implementation 

Date;

(b) such CCM Client Transaction is not an Excluded Transaction (as defined in the 2019 

NTCE Protocol) provided that if the Underlying Swap Transaction of such CCM Client 

Transaction relates to more than one Reference Entity and would otherwise be a 

Protocol Covered Transaction but for the inclusion of any Affected Portion (as defined 

in the 2019 NTCE Protocol) therein, such Affected Portion shall be exclude for the 

purposes of this Mandatory Provision 2.4 and the remaining portion of such CCM 

Client Transaction shall be deemed to be a Protocol Covered Transaction;

(c) the Expiration Date in respect of such CCM Client Transaction is on or after the 

Implementation Date; and

(d) no Event Determination Date has occurred in respect of the Underlying Swap

Transaction of such CCM Client Transaction prior to the Implementation Date.

3. Additional CCM Client Transactions, Compression and Succession Events

3.1 Creation of Additional CCM Client Transactions

Immediately following the creation of Matched Pairs by LCH SA pursuant to Section 

9.1 (Creation of Matched Pairs) of the CDS Clearing Supplement, if a CCM Client Transaction 

has been specified to have been split into or replaced by two or more separate CCM Client 

Transactions in the TIW as a result of the creation of such Matched Pairs, such CCM Client 

Transaction shall be split into or terminated and replaced by two or more (as applicable) 
corresponding CCM Client Transactions. The Swaption Notional Amount of each such CCM 

Client Transaction (and the Original Notional Amount for the relevant Underlying Swap 

Transaction) shall correspond to the Swaption Notional Amount (and the Original Notional 

Amount) specified in TIW for such CCM Client Transaction. 

3.2 Reversal of Creation of Additional CCM Client Transactions

If a CCM Client Transaction has been split into two or more CCM Client Transactions pursuant 

to Mandatory Provision 3.1 (Creation of Additional CCM Client Transactions) above and the 

relevant DC Credit Event Announcement in respect of a Restructuring Credit Event that led 

to the creation of the Matched Pairs is reversed such that Section 5.9 (Reversal of DC Credit 

Event Announcements) of Part C of the CDS Clearing Supplement applies, then, subject to 

Section 10.2(a)(i) of the 2014 ISDA Credit Derivatives Definitions and provided that no 

Subsequent Restructuring has occurred, any additional CCM Client Transactions created 

pursuant to Mandatory Provision 3.1 (Creation of Additional CCM Client Transactions) above 

shall be deemed not to have been created. Any Credit Event Notices delivered in connection 

with such CCM Client Transactions in relation to such Restructuring Credit Event shall be 

deemed to be ineffective. 

3.3 Compression of CCM Client Transactions

If two or more CCM Client Transactions are specified in TIW to have been compressed into a 

single CCM Client Transaction pursuant to Chapter 3 (Compression) of Title III (Clearing 

Operations) of the CDS Clearing Rule Book, such CCM Client Transactions shall be compressed 

into a single CCM Client Transaction with a Swaption Notional Amount (and an Original 

Notional Amount for the relevant Underlying Swap Transaction) equal to the aggregate 

Swaption Notional Amounts of the original CCM Client Transactions.

4. Validity of Notices

Save if and as expressly stated to the contrary in the Mandatory Provisions, any notice 

delivered by a CCM Client to its CCM in respect of a CCM Client Transaction (including, 

without limitation, a Credit Event Notice or Notice to Exercise Movement Option) at a time 

or in a manner in which the CCM would not be permitted to deliver such a notice to LCH SA 

(or to a relevant Matched Buyer or Matched Seller as designee of LCH SA (as applicable)) in 

respect of the corresponding CCM Client Cleared Transaction pursuant to the terms of Part C 

of the CDS Clearing Supplement shall be deemed not to have been delivered.

5. Designation of CCM Client by CCM for Exercise or Abandonment of Exercise Cleared 

Transactions

5.1 Designation by CCM

CCM and CCM Client hereby agree that CCM shall designate the CCM Client as its Exercise 

Delegation Beneficiary in respect of the CCM Client Cleared Transaction(s) relating to the 

CCM Client Transaction(s) between CCM and CCM Client pursuant to Section 6.4 (Delegation 

by Clearing Members to CCM Clients) of Part C of the CDS Clearing Supplement for the 

purpose of the Exercise (in whole or in part) or Abandonment of such CCM Client Cleared 

Transactions(s) and receipt of Swaption Notices on its behalf. 
5.2 Exercise Notices and Abandonment Notices delivered in respect of CCM Client Cleared 

Transaction 

Neither the CCM nor CCM Client may deliver Swaption Notices in relation to the CCM Client 

Transaction corresponding to a CCM Client Cleared Transaction in respect of which CCM 

Client has been designated by the CCM as its Exercise Delegation Beneficiary in accordance 

with Mandatory Provision 5.1 (Designation by CCM) above. Instead, if CCM Client as Exercise 

Delegation Beneficiary of the CCM delivers or receives (or is deemed to deliver or receive) a 

valid Swaption Notice in respect of the CCM Client Cleared Transaction corresponding to such 

CCM Client Transaction, such notice shall be deemed also to be a valid Swaption Notice for 

the purposes of such CCM Client Transaction.

5.3 Exercise and Abandonment by way of EEP

Subject to Mandatory Provision 5.4 (Consequences of EEP Failure) and Mandatory Provision 

5.7 (CCM Client Communications Failure Event) below, any submission of an Option Intent by 

CCM Client in respect of a CCM Client Cleared Transaction in respect of which such CCM Client 

has been designated as Exercise Delegation Beneficiary shall be made via its Client Portal 

Account in the EEP. If (i) the CCM Client submits such an Option Intent via its Client Portal 

Account (ii) the Submission Time of such Option Intent is prior to the Submission Deadline on 

the Expiration Date and (iii) LCH SA has completed those steps necessary to make such Option 

Intent available for viewing in the EEP, including validation of the EEP Controls, such 

submission shall be deemed to constitute the delivery by the CCM (as Matched Buyer) of a 

valid Exercise Notice or Abandonment Notice (as applicable) in respect of the CCM Client 

Cleared Transactions pursuant to Section 6.4 (Delegation by Clearing Members to CCM 

Clients) of Part C of the CDS Clearing Supplement. An Option Intent shall become irrevocable 

by CCM Client as from the Submission Time. For the avoidance of doubt, CCM Client shall not 

be able to require a Force Submission in accordance with Section 5 of the Procedures after 

the Submission Deadline, including if the relevant Option Intent is deemed illogical further to 

EEP Controls carried out at or after the Submission Deadline. The deemed time of delivery of 

such Swaption Notice shall be the Submission Time specified by the EEP in respect of such 

Option Intent. 

5.4 Consequences of EEP Failure

If an EEP Failure Event occurs, from (and including) the EEP Failure Event Time to (but 

excluding) the EEP Resolution Time:

(a) Mandatory Provision 5.3 (Exercise and Abandonment by way EEP) shall not apply and 

CCM Client shall deliver Swaption Notices directly to the Matched Seller or its relevant 

Exercise Delegation Beneficiary (with a copy to the Matched Seller), as applicable, in 

accordance with Section 6.5(b) (Consequences of EEP Failure) and Section 8 (Delivery 

of Notices) of Part C of the CDS Clearing Supplement using the notice details provided 

by LCH SA in the Protected Exercise Matched Pair Report pursuant to Section 6.1

(Creation and Notification of Exercise Matched Pairs) and Section 6.5(a)(ii) (Access to 

the Protected Exercise Matched Pair Report) of Part C of the CDS Clearing Supplement;

(b) If LCH SA does not provide the Protected Exercise Matched Pair Report by the EMP 

Notification Deadline (or, where an EEP Failure Event occurs after the EMP 
Notification Deadline, from the time of such EEP Failure Event until such time as LCH 

provides the Protected Exercise Matched Pair Report), Mandatory Provision 5.2

(Exercise Notices and Abandonment Notices delivered in respect of CCM Client Cleared 

Transaction) and Mandatory Provision 5.3 (Exercise and Abandonment by way EEP) 

and paragraph (a) above shall not apply and accordingly CCM Client shall deliver 

Swaption Notices to LCH SA on behalf of the CCM;

(c) any notice delivered via the EEP prior to the EEP Failure Event Time will be valid and 

will not be affected by such EEP Failure Event; and

(d) any notice delivered or purported to be delivered via the EEP at or following the EEP 

Failure Event Time but prior to the EEP Resolution Time will not be valid and effective.

Mandatory Provision 5.2 (Exercise Notices and Abandonment Notices delivered in respect of 

CCM Client Cleared Transaction) and Mandatory Provision 5.3 (Exercise and Abandonment by 

way EEP) shall apply with effect from the EEP Resolution Time. 

5.5 Duty to Deliver Swaption CCM Client Notice

CCM Client shall notify LCH SA and its CCM or deliver a copy to LCH SA and its CCM of any 

Swaption Notice delivered by it (as Exercise Delegation Beneficiary of Matched Buyer) to 

Matched Seller (or to the Client of Matched Seller as Exercise Delegation Beneficiary of 

Matched Seller on its behalf) in accordance with Mandatory Provision 5.4 (Consequences of 

EEP Failure) which such CCM Client asserts was effective (such notification, or delivery of such 

copy, in respect of any relevant notice, a Swaption CCM Client Notice) by no later than the 

Submission Deadline on the Expiration Date (the Swaption CCM Client Notice Deadline). If 

no Swaption CCM Client Notice is delivered by CCM Client prior to the Swaption CCM Client 

Notice Deadline, any Exercise Notice sent by CCM Client pursuant to Mandatory Provision 5.4

(Consequences of EEP Failure) shall, subject to Section 6.8 (Consequences of no Swaption 

Clearing Member Notice or Swaption CCM Client Notice being received by LCH SA) of Part C 

of the CDS Clearing Supplement, be deemed to be invalid for the purposes of Mandatory 

Provision 5.2 (Exercise Notices and Abandonment Notices delivered in respect of CCM Client 

Cleared Transaction). 

Notwithstanding the above: 

(a) if LCH SA elects to give effect to an Exercise Notice in respect of a Swaption CCM 

Client Notice that it determines to have been delivered pursuant to Section 6.8

(Consequences of no Swaption Clearing Member Notice or Swaption CCM Client 

Notice being received by LCH SA) of Part C of the CDS Clearing Supplement, then Part 

C of the CDS Clearing Supplement shall apply as if LCH SA had received a Swaption

CCM Client Notice in respect of the relevant Exercise Notice by the Swaption CCM 

Client Notice Deadline; and 

(b) if LCH SA determines that it is not possible to give effect to the terms of any such 

Exercise Notice in respect of which no Swaption CCM Client Notice was received by 

LCH SA by the Swaption CCM Client Notice Deadline, the relevant Clearing Members 

(or their Exercise Delegation Beneficiaries, as applicable), as identified in the 

Protected Exercise Matched Pair Report, shall acquire rights as against each other as 
though party to a bilateral credit default swap transaction on the terms of the 

relevant Underlying Index Transaction. The Settlement Payment shall be due and 

payable two Transaction Business Days following the giving of a notice that such 

amount is due and payable. The relevant Clearing Members (or their Exercise 

Delegation Beneficiaries, as applicable) shall have enforcement rights as against each 

other pursuant to the Contracts (Rights of Third Parties) Act 1999 in respect of any 

resulting payments and deliveries; LCH SA shall have no liability in respect thereof. 

5.6 Delivery of notices to and from LCH SA in case of EEP Failure Event

In the case of the occurrence of an EEP Failure Event, any notice or communication given by 

LCH SA to the CCM Client or vice versa shall be given to the address or number provided by 

the CCM Client to LCH SA and vice versa when the relevant CCM registered such CCM Client 

for the clearing of Index Swaption Cleared Transactions, or any other address or number duly 

notified thereafter by the such CCM Client to LCH SA or vice versa. 

5.7 CCM Client Communications Failure Event

(a) Right to deliver Notices manually following CCM Client Communications Failure Event

If CCM Client is affected by a significant communications or information technology 

failure resulting in it being impossible or impractical for it to deliver a Swaption Notice 

via the EEP (a "CCM Client Communications Failure Event") it may, notwithstanding 

Mandatory Provision 5.3 (Exercise and Abandonment by way of EEP) above, deliver 

Swaption Notices in respect of the CCM Client Cleared Transaction to LCH SA in 

accordance with Section 6.10(a) of Part C of the CDS Clearing Supplement and any 

Option Intent submitted by LCH SA in the EEP (or an alternative internal system of LCH 

SA) in respect of such Swaption Notice pursuant to Section 6.10(b) of Part C of the CDS 

Clearing Supplement with a Submission Time prior to the Submission Deadline shall 

be deemed to have been submitted by CCM Client for the purposes of Mandatory 

Provision 5.3 (Exercise and Abandonment by way of EEP) above. 

In respect of any Swaption Notice delivered pursuant to this Mandatory Provision 5.7, 

LCH SA may determine in its sole discretion that it is not able to submit the relevant 

Option Intent in the relevant system with a Submission Time prior to the Submission 

Deadline on the Expiration Date. In such case, LCH SA will inform the CCM Client and, 

subject to Mandatory Provision 5.5 above, such CCM Client will be deemed not to have 

submitted an Option Intent in respect of the relevant Exercise Cleared Transaction. 

(b) Client to notify LCH SA of occurrence of CCM Client Communications Failure Event

Following the occurrence of a CCM Client Communications Failure Event, the CCM 

Client shall, prior to or at the same time as delivering any Swaption Notice to LCH SA 

pursuant to sub-paragraph (a) above, deliver to LCH SA a notice (in the form set out at 

Appendix VI to Part C of the CDS Clearing Supplement) signed by an authorised

signatory certifying that it is affected by a CCM Client Communications Failure Event 

(or, if CCM Client is unable to deliver such notice in writing, orally by telephone).
(c) Notification of Resolution of CCM Client Communications Failure Event

As soon as reasonably practicable upon CCM Client ceasing to be subject to a CCM 

Client Communications Failure Event, it shall notify LCH SA accordingly (in the form set 

out at Appendix VII to Part C of the CDS Clearing Supplement) and thereupon subparagraph (a) above shall cease to apply.

(d) Duty to Mitigate

If CCM Client is subject to a CCM Client Communications Failure Event, it shall use 

reasonable endeavours to mitigate the operational impact of any CCM Client 

Communications Failure Event, to cure such CCM Client Communications Failure Event 

as soon as reasonably practicable and to ensure that the circumstances giving rise to 

the relevant CCM Client Communications Failure Event do not recur.

5.8 Confidentiality Waiver

CCM Client hereby agrees and consents to the disclosure of its address, fax number,

telephone number, contact email address (and any other applicable notice details provided 

by it) by CCM to LCH SA and by LCH SA in any Protected Exercise Matched Pair Report in 

accordance with Section 6.1 (Creation and Notification of Exercise Matched Pairs) and Section 

6.5(a)(ii) (Access to the Protected Exercise Matched Pair Report) of Part C of the CDS Clearing 

Supplement. 

6. Determination of Credit Events and Succession Events

Notwithstanding any provision to the contrary:

(a) the Calculation Agent shall not make any determination in respect of any matter 

which is or may be subject to resolution under Sections 3.5 (Successor Resolutions) or 

3.6 (Substitute Reference Obligation Resolutions) of the DC Rules; and

(b) neither party shall be entitled to deliver a Successor Notice or a Credit Event Notice 

(other than Credit Event Notices in relation to a Restructuring Credit Event in 

accordance with the terms of any CCM Client Transaction (including the Mandatory 

Provisions)).

7. Timings for the Delivery of Notices for CCM Client Transactions

In this Mandatory Provision 7:

"Swaption Restructuring CCM Client Buyer" means a CCM Client that is party to a CCM Client 

Transaction and is protection buyer under the Underlying Swap Transaction for such CCM 

Client Transaction; 

"Swaption Restructuring CCM Client Seller" means a CCM Client that is party to a CCM Client 

Transaction and is protection seller under the Underlying Swap Transaction for such CCM 

Client Transaction; 
"Swaption Restructuring CCM Buyer/Matched Seller" means a CCM that is party to (a) a CCM 

Client Transaction and is protection buyer under the Underlying Swap Transaction for such 

CCM Client Transaction; and (b) a corresponding CCM Client Cleared Transaction and is 

protection seller under the Underlying Swap Transaction for such CCM Client Cleared 

Transaction; and

"Swaption Restructuring CCM Seller/Matched Buyer" means a CCM that is party to (a) a CCM 

Client Transaction and is protection seller under the Underlying Swap Transaction for such 

CCM Client Transaction; and (b) a corresponding CCM Client Cleared Transaction and is 

protection buyer under the Underlying Swap Transaction for such CCM Client Cleared 

Transaction.

The following provisions shall solely be applicable in respect of a CCM Client Transaction between a 

Swaption Restructuring CCM Client Buyer and its Swaption Restructuring CCM Seller/Matched 

Buyer:

7.1 Delivery of Notices by Swaption Restructuring CCM Client Buyer

For the purposes of the delivery by Swaption Restructuring CCM Client Buyer of any notice in 

respect of a CCM Client Transaction (other than a Swaption Notice to which this Mandatory 

Provision 7 shall not apply), Section 1.38 (Requirements Regarding Notices) of the 2014 ISDA 

Credit Derivatives Definitions shall be amended so as to provide that, solely in respect of the 

final day on which such notice could validly be delivered pursuant to the terms of such CCM 

Client Transaction (including the Mandatory Provisions), any such notice shall be required to 

be delivered on or prior to 2:00 p.m. (Calculation Agent City time) in order to be effective.

A notice (including, without limitation, a Credit Event Notice or a Notice to Exercise 

Movement Option) delivered by Swaption Restructuring CCM Client Buyer after 2:00 p.m. 

(Calculation Agent City time) on the final day on which such notice could validly be delivered 

pursuant to the terms of the relevant CCM Client Transaction (including the Mandatory 

Provisions) shall be deemed not to have been delivered. 

7.2 Onward Delivery of Credit Event Notices and Notices to Exercise Movement Option by 

Swaption Restructuring CCM Seller/Matched Buyer to Matched Seller

Any Credit Event Notice or Notice to Exercise Movement Option delivered by Swaption 

Restructuring CCM Client Buyer shall not be effective unless and until Swaption Restructuring 

CCM Seller/Matched Buyer effectively delivers the relevant equivalent notice to the relevant 

Matched Seller in respect of and pursuant to the terms of the corresponding Swaption 

Restructuring Cleared Transaction.

Swaption Restructuring CCM Seller/Matched Buyer undertakes to deliver such a notice to the 

relevant Matched Seller within two hours of its receipt of the equivalent notice from 

Swaption Restructuring CCM Client Buyer if such notice is received between 9:00 a.m. 

(Calculation Agent City time) and 4:00 p.m. (Calculation Agent City time) on a Calculation 

Agent City Business Day. Any such notice received by Swaption Restructuring CCM 

Seller/Matched Buyer after 4:00 p.m. (Calculation Agent City time) on a Calculation Agent 

City Business Day shall be deemed to have been received at 9:00 a.m. (Calculation Agent City 

time) on the following Calculation Agent City Business Day. Any such notice received by 
Swaption Restructuring CCM Seller/Matched Buyer before 9:00 a.m. (Calculation Agent City 

time) on a Calculation Agent City Business Day shall be deemed to have been received at 9:00 

a.m. (Calculation Agent City time) on such Calculation Agent City Business Day. Any such 

notice delivered on a day that is not a Calculation Agent City Business Day shall be deemed 

to have been delivered at 9.00 a.m. (Calculation Agent City time) on the following Calculation 

Agent City Business Day.

7.3 Receipt of Credit Event Notices and Notices to Exercise Movement Option by Swaption 

Restructuring CCM Seller/Matched Buyer deemed to be Receipt by Swaption Restructuring 

CCM Client Buyer

Any Credit Event Notice or Notice to Exercise Movement Option delivered by Matched Seller 

to Matched Buyer in respect of and pursuant to the terms of a Swaption Restructuring 

Cleared Transaction relating to a CCM Client Transaction between such Swaption 

Restructuring CCM Seller/Matched Buyer and Swaption Restructuring CCM Client Buyer shall 

be deemed to constitute simultaneous delivery by Swaption Restructuring CCM 

Seller/Matched Buyer to Swaption Restructuring CCM Client Buyer of such notice in respect 

of such CCM Client Transaction. 

Swaption Restructuring CCM Seller/Matched Buyer undertakes to deliver such a notice to 

Swaption Restructuring CCM Client Buyer within two hours of its receipt of the equivalent

notice from the relevant Matched Seller if such notice is received between 9:00 a.m. 

(Calculation Agent City time) and 4:00 p.m. (Calculation Agent City time) on a Calculation 

Agent City Business Day. Any such notice received by Swaption Restructuring CCM

Seller/Matched Buyer after 4:00 p.m. (Calculation Agent City time) on a Calculation Agent 

City Business Day shall be deemed to have been received at 9:00 a.m. (Calculation Agent City 

time) on the following Calculation Agent City Business Day. Any such notice received by 

Swaption Restructuring CCM Seller/Matched Buyer before 9:00 a.m. (Calculation Agent City 

time) on a Calculation Agent City Business Day shall be deemed to have been received at 9:00 

a.m. (Calculation Agent City time) on such Calculation Agent City Business Day. Any such 

notice delivered on a day that is not a Calculation Agent City Business Day shall be deemed 

to have been delivered at 9.00 a.m. (Calculation Agent City time) on the following Calculation 

Agent City Business Day.

The following provisions shall solely be applicable in respect of a CCM Client Transaction between a 

Swaption Restructuring CCM Client Seller and its Swaption Restructuring CCM Buyer/Matched 

Seller: 

7.4 Delivery of Credit Event Notices and Notices to Exercise Movement Option by Swaption 

Restructuring CCM Client Seller

For the purposes of the delivery by Swaption Restructuring CCM Client Seller of any Credit 

Event Notice or any Notice to Exercise Movement Option in respect of a CCM Client 

Transaction, Section 1.38 (Requirements Regarding Notices) of the 2014 ISDA Credit 

Derivatives Definitions shall be amended so as to provide that, solely in respect of the final 

day on which such notice could validly be delivered pursuant to the terms of such CCM Client 

Transaction (including the Mandatory Provisions), any such notice shall be required to be 

delivered on or prior to 2:00 p.m. (Calculation Agent City time) in order to be effective.
A Credit Event Notice or Notice to Exercise Movement Option delivered by Swaption 

Restructuring CCM Client Seller after 2:00 p.m. (Calculation Agent City time) on the final day 

on which such notice could validly be delivered pursuant to the terms of the relevant CCM 

Client Transaction (including the Mandatory Provisions) shall be deemed not to have been 

delivered.

7.5 Onward Delivery of Credit Event Notices and Notices to Exercise Movement Option by 

Swaption Restructuring CCM Buyer/Matched Seller to Matched Buyer

Any Credit Event Notice or Notice to Exercise Movement Option delivered by Swaption 

Restructuring CCM Client Seller shall not be effective unless and until Swaption Restructuring 

CCM Buyer/Matched Seller effectively delivers the relevant equivalent notice to the relevant 

Matched Buyer in respect of and pursuant to the terms of the corresponding Swaption 

Restructuring Cleared Transaction.

Swaption Restructuring CCM Buyer/Matched Seller undertakes to deliver such a notice to the 

relevant Matched Buyer within two hours of its receipt of the equivalent notice from 

Swaption Restructuring CCM Client Seller if such notice is received between 9:00 a.m. 

(Calculation Agent City time) and 4:00 p.m. (Calculation Agent City time) on a Calculation 

Agent City Business Day. Any such notice received by Swaption Restructuring CCM 

Buyer/Matched Seller after 4:00 p.m. (Calculation Agent City time) on a Calculation Agent 

City Business Day shall be deemed to have been received at 9:00 a.m. (Calculation Agent City 

time) on the following Calculation Agent City Business Day. Any such notice received by 

Swaption Restructuring CCM Buyer/Matched Seller before 9:00 a.m. (Calculation Agent City 

time) on a Calculation Agent City Business Day shall be deemed to have been received at 9:00 

a.m. (Calculation Agent City time) on such Calculation Agent City Business Day. Any such 

notice delivered on a day that is not a Calculation Agent City Business Day shall be deemed 

to have been delivered at 9.00 a.m. (Calculation Agent City time) on the following Calculation 

Agent City Business Day.

7.6 Receipt of Credit Event Notices and Notices to Exercise Movement Option by Swaption 

Restructuring CCM Buyer/Matched Seller deemed to be Receipt by Swaption Restructuring 

CCM Client Seller

Any Credit Event Notice or Notice to Exercise Movement Option which is delivered by 

Matched Buyer in respect of and pursuant to the terms of a Swaption Restructuring Cleared 

Transaction relating to a CCM Client Transaction between such Swaption Restructuring CCM 

Buyer/Matched Seller and Swaption Restructuring CCM Client Seller shall be deemed to 

constitute simultaneous delivery by Swaption Restructuring CCM Buyer/Matched Seller to 

Swaption Restructuring CCM Client Seller of such notice in respect of such CCM Client 

Transaction. 

Swaption Restructuring CCM Buyer/Matched Seller undertakes to deliver such a notice to 

Swaption Restructuring CCM Client Seller within two hours of its receipt of the equivalent 

notice from the relevant Matched Buyer if such notice is received between 9:00 a.m. 

(Calculation Agent City time) and 4:00 p.m. (Calculation Agent City time) on a Calculation 

Agent City Business Day. Any such notice received by Swaption Restructuring CCM 

Buyer/Matched Seller after 4:00 p.m. (Calculation Agent City time) on a Calculation Agent 
City Business Day shall be deemed to have been received at 9:00 a.m. (Calculation Agent City 

time) on the following Calculation Agent City Business Day. Any such notice received by 

Swaption Restructuring CCM Buyer/Matched Seller before 9:00 a.m. (Calculation Agent City 

time) on a Calculation Agent City Business Day shall be deemed to have been received at 9:00 

a.m. (Calculation Agent City time) on such Calculation Agent City Business Day. Any such 

notice delivered on a day that is not a Calculation Agent City Business Day shall be deemed 

to have been delivered at 9.00 a.m. (Calculation Agent City time) on the following Calculation 

Agent City Business Day.

8. Settlement

8.1 Creation of Underlying Swap Transaction

Following exercise of the CCM Client Transaction (and the related CCM Client Cleared 

Transaction) and upon creation of the Underlying Swap Transaction, such Underlying Swap 

Transaction shall constitute a CCM Client Transaction between the CCM and its CCM Client 

for the purposes of Part B of the CDS Clearing Supplement corresponding to the CCM Client 

Cleared Transaction registered in the CCM Client Trade Account in the name of the CCM for 

the CCM Client created pursuant to Section 7.1 (Creation of Index Cleared Transactions) of 

Part C of the CDS Clearing Supplement and governed following creation by Part B of the CDS 

Clearing Supplement. The provisions of Appendix XIII (CCM Client Transaction Requirements) 

of Part B of the CDS Clearing Supplement shall be deemed to be incorporated into the new 

CCM Client Transaction. 

8.2 Creation of Restructuring Single Name Transaction

Following exercise of the CCM Client Transaction (and the related CCM Client Cleared 

Transaction), if any 'New Trade' is created pursuant to the provisions of sub-paragraph 5.2(b) 

(Transfer and termination of Component Transactions) of the Relevant Standard Terms 

Supplement (as defined in the iTraxx® Swaption Standard Terms Supplement) as a result of 

the occurrence of an M(M)R Restructuring, such 'New Trade' shall constitute a CCM Client 

Transaction for the purposes of Part B of the CDS Clearing Supplement corresponding to the 

CCM Client Cleared Transaction registered in the CCM Client Trade Account in the name of 

the CCM for the CCM Client created pursuant to Section 7.3 (Creation of Restructuring Cleared 

Transactions for Triggering and/or Settlement purposes) or Section 7.4 (Creation of Initial 

Single Name Cleared Transactions in respect of untriggered M(M)R Restructuring) of Part C of 

the CDS Clearing Supplement and governed following creation by Part B of the CDS Clearing 

Supplement. The provisions of Appendix XIII (CCM Client Transaction Requirements) of Part B 

of the CDS Clearing Supplement shall be deemed to be incorporated into the new CCM Client 

Transaction. 

8.3 Auction Settlement Date

If an Event Determination Date has occurred in respect of a Credit Event for a Reference Entity 

referenced by the Underlying Swap Transaction in accordance with the 'Operation of each 

Underlying Swap Transaction' section of Part 4 (Underlying Swap Transaction Terms) of the 

iTraxx® Swaption Standard Terms Supplement or, as the case may be, section 5.2 (Operation 

of Underlying Swap Transaction) of the CDX Swaption Standard Terms Supplement, 

notwithstanding anything to the contrary in the iTraxx® Swaption Standard Terms 
Supplement or, as the case may be, the CDX Swaption Standard Terms Supplement, the 

Auction Settlement Date for any such Event Determination Date will be deemed to be the 

later of (i) the Auction Settlement Date that would be determined in accordance with Section 

6.3 of the 2014 Credit Derivatives Definitions and (ii) the Transaction Business Day 

immediately following the Expiration Date.

8.4 Settlement Payment 

Notwithstanding anything to the contrary in the iTraxx® Swaption Standard Terms 

Supplement or, as the case may be, the CDX Swaption Standard Terms Supplement, the 

Settlement Payment (or the absolute value thereof, as applicable) shall be payable on the 

Transaction Business Day immediately following the Expiration Date.

9. Calculation Agent

9.1 Appointment of Calculation Agent

The Calculation Agent in respect of any CCM Client Transaction shall be the CCM. 

9.2 Calculations and Determinations of Calculation Agent

In the event that the Calculation Agent is entitled or required to make any calculation or 

determination in respect of a CCM Client Transaction in respect of a matter that has already 

been or will be determined in respect of and pursuant to the terms of the corresponding CCM 

Client Cleared Transaction, the Calculation Agent in respect of the CCM Client Transaction 

shall be obliged to make the same calculation or determination in respect of such CCM Client 

Transaction as the determination in respect of the corresponding CCM Client Cleared 

Transaction.

10. Amendments

The Mandatory Provisions may be amended from time to time pursuant to Section 11

(Amendments) of Part C of the CDS Clearing Supplement. The parties agree that any 

amendments made to the Mandatory Provisions in accordance with Section 11

(Amendments) of Part C of the CDS Clearing Supplement shall be deemed to apply 

automatically to the CCM Client Transaction(s) with effect from the date of such amendment 

to the Mandatory Provisions.