Article 3 Exchange of collateral agreement

The exchange of collateral agreement referred to in point (g) of the first subparagraph of Article 2(2) shall include at least the following terms:

  1. (a)

    the levels and type of collateral required;

  2. (b)

    the segregation arrangements;

  3. (c)

    the netting set to which the exchange of collateral refers;

  4. (d)

    the procedures for notification, confirmation and adjustment of margin calls;

  5. (e)

    the procedures for settlement of margin calls for each type of eligible collateral;

  6. (f)

    the procedures, methods, timeframes and allocation of responsibilities for the calculation of margins and the valuation of collateral;

  7. (g)

    the events that are considered to be default or termination events;

  8. (h)

    the law applicable to the non-centrally cleared OTC derivative contract;

  9. (i)

    the law applicable to the exchange of collateral agreement.