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Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

You are viewing the version of the document as on 2021-01-01.

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.