Thursday June 6 2024

News Source: Global Exchanges

Focus: Clearing & Settlement

Type: General

Country: Canada


On 5th June 2024, the Montréal Exchange (MX) published a circular announced amendments to the rules of the Canadian Derivatives Clearing Corporation (CDCC) regarding voluntary withdrawal and the limited liability of clearing members.

CDCC proposed to amend Section A-1A09 in Rule A-1A of the Rules to clarify current CDCC provisions with regards to the voluntary withdrawal of CMs concurrently to a Default Management Period, and to their potential liability towards CDCC further to such withdrawal.

  • CDCC proposes to modify Paragraph A-1A09(2) to specify that, should the withdrawal of a CM become effective while a DMP is ongoing, such withdrawal will be postponed and become effective after the end of the DMP, on such date where the CM will have satisfied all its obligations towards CDCC (including the closing of all of the withdrawing CM’s outstanding positions at CDCC), or on the date agreed upon by CDCC.
  • CDCC proposes to introduce Paragraph A-1A09(3) to clarify that a withdrawing CM’s liability towards CDCC will be limited to the obligations arising from the DMPs ongoing while the CM still has outstanding positions at CDCC.

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