Common use of Margin Clause in Contracts

Margin. 1. Prior to commencement of trading on the relevant exchange and throughout the duration of this Clearing Agreement, the Exchange Member Customer shall provide to, and maintain with, SFP collateral and security in such form, and for such amount (including but not limited to cash and such other property as SFP deem acceptable as collateral) as SFP may, from time to time, require in SFP’s absolute discretion as security for: (a) SFP providing the clearing arrangements and clearing the Exchange Member Customer’s Exchange Transactions; (b) any and all liability which SFP may assume when providing clearing arrangements hereunder and clearing the Exchange Member Customer’s Exchange Transactions, including but not limited to any indemnity, guarantee or other liability which SFP may assume to the relevant exchange or clearing house, pursuant to all Applicable Laws; (c) the performance of the Exchange Member Customer’s obligations under this Clearing Agreement, the Customer Agreement and in respect of each Exchange Transaction; and (d) the payment of all sums of money, and the delivery of all property, which are now or shall at any time be owing or deliverable to SFP anywhere on the Exchange Member Customer’s accounts with SFP or the Exchange Member Customer’s Exchange Transactions whatsoever, whether from the Exchange Member Customer solely or jointly with any other person or persons. 2. The Exchange Member Customer hereby acknowledges and accepts that: (a) where the Margin of the Exchange Member Customer in the possession or control of SFP is held in a trust account or subject to a trust in favour of the Exchange Member Customer or held with a clearing house or a member of a futures exchange or a member of an overseas futures exchange or otherwise, then unless otherwise agreed between SFP and the Exchange Member Customer or otherwise required by law or such Intermediaries, such Margin will be held commingled with Margin of other customers of SFP; (b) one result of the preceding is that it would be administratively difficult and as a matter of economic costs counter-productive to attempt to allocate the respective interest entitlement (if the trust account is interest bearing) on an individual basis. This is primarily because of the constant fluctuations in the value of the commingled Margin in such trust account; (c) it is a condition for SFP accepting the Exchange Member Customer as a customer that the Exchange Member Customer agrees, to the fullest extent permitted by law, therefore to waive and relinquish in favour of SFP any and all rights and entitlements to interest and investment earnings accruing to the Exchange Member Customer’s share of Margin, whether held in such trust account or subject to a trust in favour of the Exchange Member Customer or held with any clearing house as collateral for any applicable Transaction (including without limitation any futures contract Transactions) in respect of the Exchange Member Customer (such portion of Margin held with any clearing house referred to herein as “Clearing House Collateral”); (d) at no time shall SFP be held liable or responsible in any way for any Loss suffered or incurred by the Exchange Member Customer as a result of any investment of Clearing House Collateral by any clearing house; (e) the deposit or provision of any Clearing House Collateral in any clearing house shall be subject to: (i) the clearing rules of such clearing house; (ii) any security deed or document which such clearing house may require its clearing members to enter into to govern the provision of Clearing House Collateral (which form may be prescribed and amended or supplemented from time to time by such clearing house); and (iii) any applicable law or regulation (including without limitation the SFA). (f) the Exchange Member Customer by applying to open an Account with SFP and being a customer of SFP and/or accessing or using any of SFP’s services shall therefore be deemed to agree to (and SFP will and does materially rely on the effectiveness of) such waiver and relinquishment as set out in Clause A6.1.3.2(c); and (g) SFP may however pay from time to time such portion of any actual interest and investment earnings it may receive with respect to such Margin as it deems appropriate.

Margin. 1. Prior 1.25.1 SFP may, at any time, from time to commencement of trading on time and in its sole and absolute discretion require the relevant exchange and throughout the duration of this Clearing AgreementCustomer to provide to SFP as Collateral, the Exchange Member Customer shall provide to, and maintain with, SFP collateral and security such cash or other property in such form, and for of such amount (including but not limited to cash and such other property amount, currency denomination, specifications or value as SFP deem acceptable as collateral) as SFP maymay determine in its absolute discretion, from time to time, require in SFP’s absolute discretion as security for: (a) SFP providing the clearing arrangements and clearing due performance of the Exchange Member Customer’s Exchange Transactionsobligations under any and all Transactions or Accounts; (b) for the entry into or maintaining of any and all liability outstanding Transactions or Accounts; and/or (c) for the due performance of the Customer’s other obligations to SFP whether hereunder or otherwise, (referred to herein as, “Margin”), whether or not such requirement of SFP is identical to or reflects or is greater than any applicable Margin requirements of any governmental, self-regulatory organisation in any jurisdiction (including any exchange), or any Intermediary which is engaged by SFP in accordance with Clause 1.7 herein, which is required to be maintained by SFP and/or the Customer. 1.25.2 In addition to the Margin amount as referred to in Clause 1.25.1, SFP may, at any time, from time to time and in its sole and absolute discretion provide to any Intermediary (which is engaged by SFP in accordance with Clause 1.7 herein) as Collateral, such additional cash or other property in such form, and of such amount, currency denomination, specifications or value as SFP may assume when providing clearing arrangements hereunder determine in its absolute discretion, for: (a) the due performance of the SFP’s obligations under any and clearing the Exchange Member Customer’s Exchange Transactions, including but not limited to any indemnity, guarantee all Transactions or other liability which SFP may assume Accounts relating to the relevant exchange Customer; (b) the entry into or clearing house, pursuant maintaining of any and all outstanding Transactions or Accounts relating to all Applicable Laws;the Customer; and/or (c) the due performance of SFP’s other obligations to the Exchange Member Intermediary whether hereunder or otherwise relating to the Customer, (referred to herein as, “Additional Margin”). 1.25.3 SFP may, at any time, from time to time and in its sole and absolute discretion require the Customer to provide to SFP as Collateral, such cash or other property in such form, and of such amount, currency denomination, specifications or value as SFP may determine in its absolute discretion for the Additional Margin (as applicable). 1.25.4 Nothing in this Clause 1.25 shall oblige SFP to apply and use any cash or other property for the time being deposited with, received by, held by or under the control of SFP for the Customer or the Account as Margin for the purposes of any Transaction or Account. 1.25.5 Any and all cash and other property received by SFP as Margin for purposes of any Transaction or Account of the Customer may also be applied and used by SFP as Collateral to secure any and all of the Customer’s obligations under this Clearing Agreement, the Customer Agreement and in respect of each Exchange Transaction; and (d) the payment of all sums of money, and the delivery of all property, which are now or shall at any time be owing or deliverable to SFP anywhere on the Exchange Member Customer’s accounts with SFP or the Exchange Member Customer’s Exchange Transactions whatsoever, whether from the Exchange Member Customer solely or jointly with under any other person Transaction or personsAccount. 2. 1.25.6 The Exchange Member Customer hereby acknowledges shall promptly execute such documents, instruments, assurances, acts and accepts thatdo all things as necessary or as required by SFP for creating, perfecting and/or protecting the rights of SFP to any Margin, including: (a) where delivering to SFP all security and other documents, in such form or forms acceptable to SFP, duly executed by the Margin of Customer or for the Exchange Member Customer in the possession or control of SFP is held in a trust account or subject to a trust in favour of the Exchange Member Customer or held with a clearing house or a member of a futures exchange or a member of an overseas futures exchange or otherwise, then unless otherwise agreed between SFP and the Exchange Member Customer or otherwise required by law or such Intermediaries, such Margin will be held commingled with Margin of other customers of SFP;; and (b) one result of where necessary, having the preceding is that it would be administratively difficult same duly filed, stamped and as a matter of economic costs counter-productive to attempt to allocate the respective interest entitlement (if the trust account is interest bearing) on an individual basis. This is primarily because of the constant fluctuations registered in the value of the commingled Margin in such trust account; (c) it is a condition for SFP accepting the Exchange Member Customer as a customer that the Exchange Member Customer agrees, to the fullest extent permitted by law, therefore to waive and relinquish in favour of SFP any and accordance with all rights and entitlements to interest and investment earnings accruing to the Exchange Member Customer’s share of Margin, whether held in such trust account or subject to a trust in favour of the Exchange Member Customer or held with any clearing house as collateral for any applicable Transaction (including without limitation any futures contract Transactions) in respect of the Exchange Member Customer (such portion of Margin held with any clearing house referred to herein as “Clearing House Collateral”); (d) at no time shall SFP be held liable or responsible in any way for any Loss suffered or incurred by the Exchange Member Customer as a result of any investment of Clearing House Collateral by any clearing house; (e) the deposit or provision of any Clearing House Collateral in any clearing house shall be subject to: (i) the clearing rules of such clearing house; (ii) any security deed or document which such clearing house may require its clearing members to enter into to govern the provision of Clearing House Collateral (which form may be prescribed and amended or supplemented from time to time by such clearing house); and (iii) any applicable law or regulation (including without limitation the SFA)Applicable Laws. (f) the Exchange Member Customer by applying to open an Account with SFP and being a customer of SFP and/or accessing or using any of SFP’s services shall therefore be deemed to agree to (and SFP will and does materially rely on the effectiveness of) such waiver and relinquishment as set out in Clause A6.1.3.2(c); and (g) SFP may however pay from time to time such portion of any actual interest and investment earnings it may receive with respect to such Margin as it deems appropriate.