Please be informed that as from 1 April 2021, a new version of the Rules of Conduct in the Event of Default will come into force (“Rules”).
The amendments are a result of a review of the Rules in view of the planned entry into force of a revised version of the Regulations of the Exchange Clearing House (Commodity Market) on 1 April 2021. The revised Rules comprise changes designed to optimize the control process of an event of Default, including:
- more precise provisions on prudential mechanisms that the House may apply in respect of an Exchange Clearing House Member or a Clearing and Settlement House Participant, in order to reduce the possibility of occurrence of Default,
- more emphasis on the duties of entities generating material risk for the clearing guarantee system.
Furthermore, the Rules of Conduct in the Event of Default also regulate the following issues:
- a catalog of grounds serving as a basis to determine an event of Default in respect of a Clearing House Member,
- the process of risk management and mitigation in respect of an Default,
- the rules of Default Waterfall usage.
The Rules of Conduct in the Event of Default have been published on IRGiT’s website.
Should you have any questions, do not hesitate to contact us.
Risk Management Department: