Common use of HAIRCUT CLASSES Clause in Contracts

HAIRCUT CLASSES. (“margin value” calculation) Deposited financial instruments are divided in “classes” according to: - the criteria adopted for Margining purposes (duration or instrument peculiarity), for Italian financial instruments; - the duration/residual time to delivery, for the other financial instruments. To each “class” corresponds a predefined haircut percentage. Class definition and their corresponding haircuts are periodically reviewed by CC&G and made available on its website xxx.xxxx.xxx/xxx. “Margin value” of each financial instrument is calculated by curtailing the “market value” – determined as indicated at point 2) – of the haircut percentage associated to the class in which the financial instrument is included.