Clearing & Settlement Between Members

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9. CLEARING & SETTLEMENT BETWEEN MEMBERS

9.1 Trades eligible to be cleared and settled via FXCH FXCH's clearing and settlement services are exclusively made available to Members of FXCH. In consequence, FXCH will only clear trades to which both the buyer and the seller are FXCH Members and FXCH will not clear any trades made with non members of FXCH.

9.2 Novation FXCH clearing and settlement service functions on the basis of a novation process. Upon a Member buyer and seller opening a trade, FXCH is replaced and novated as the counterparty to the trades, with both the buyer and the seller, as soon as the trades are confirmed by both parties to FXCH. Upon novation, FXCH will have an equal yet opposite market position with both the original buyer and seller in the trade. In consequence, Members using FXCH clearing and Settlement Service will only have a legal and economical relationship with FXCH, thus eliminating a multiplicity of counterparties and the associated legal and administrative workload.

9.3 Posting trades to FXCH Members shall post their trades directly to FXCH electronically via straight through processing, or have them posted by an FXCH supported trading platform. FXCH will supply a standard-based proprietary API to its Members in order for this to be accomplished.

9.4 Pre-delivery Roll of positions by default Unless explicit instructions are given by a member to FXCH to deliver the base or term currency of a trade and to pay in the counter currency, or unless the trade is closed out by an opposite offsetting trade, the trade will be rolled into the next “Spot” value date.

When rolling an open position into the next value date, FXCH will apply a reference roll rate plus/minus FXCH's fees. The roll rates will be available on FXCH web based interface.

9.5 Netting Agreement Any purchase and sale of currencies between a Member and FXCH for a given value date is paid/debited on a net basis. - To the fullest extent possible, the Parties shall apply the provisions of the UK Financial Netting Act (Citefull name).

9.6 Settlement time Settlement for trades posted to FXCH takes place each Business Day between the hours of 08:00 and 10:00 London time. Business days are defined by FXCH Business day Calendar, which is available on the FXCH web site and FXCH web based interface.

9.7 Delivery Notifications Trades posted to FXCH will be rolled into the next Spot value date, and will not go to delivery unless a "Delivery Request" message is sent to FXCH via FXCH web based interface. Delivery Notifications for a given value date must be submitted to FXCH before 17:00 New York time, the day prior to the value date attached to the trade. Technical instructions for making a "Delivery Request" are contained in the FXCH web based interface Manual which is available on the FXCH web site.

9.8 Limitations of currency withdrawal FXCH does not offer physical delivery of currencies other than currency accounts supported by FXCH. Whenever a Member makes a Delivery Request, the Member will receive a position in its account for the requested delivery of the purchased currency. However, FXCH does not provide facilities for physical cash transfers of all currencies and a Member therefore may not make withdrawals in other currencies than the currency accounts supported by FXCH.


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