Article 303 Treatment of Clearing Members' Exposures to CCPs

1.

An institution that acts as a clearing member, either for its own purposes or as a financial intermediary between a client and a CCP, shall calculate the own funds requirements for its exposures to a CCP as follows:

  1. (a) it shall apply the treatment set out in Article 306 to its trade exposures with the CCP;
  2. (b) it shall apply the treatment set out in Article 307 to its default fund contributions to the CCP.

2.

For the purposes of paragraph 1, the sum of an institution's own funds requirements for its exposures to a QCCP due to trade exposures and default fund contributions shall be subject to a cap equal to the sum of own funds requirements that would be applied to those same exposures if the CCP were a non-qualifying CCP.

[Note: This rule corresponds to Article 303 of the CRR as it applied immediately before revocation by the Treasury.]