(a) | by deleting the word “equities” wherever it appears in paragraph 3(9) and substituting in each case the word “securities”; |
(b) | by deleting the words “counterparty to whom it has extended securities financing” in paragraph 3(25) and substituting the words “customer to whom it has extended securities financing”; |
(c) | by deleting the words “counterparty’s margin account” wherever they appear in paragraph 3(25) and substituting in each case the words “customer’s margin account”; |
(d) | by deleting the words “to 130% of the debit balance” in paragraph 3(25) (ii) and substituting the words “from 110% to 130% of the debit balance”; |
(e) | by inserting, immediately after the word “occurs” in paragraph 3(26), the words “, and such calculation shall not, in any event, exceed the debit balance in the customer’s margin account”; |
(f) | by deleting the words “counterparty’s margin account” in the definition “liquidation method” in paragraph 3(27) and substituting the words “customer’s margin account”; |
(g) | by deleting sub-paragraph (41) of paragraph 3 and substituting the following sub-pararaph:“(41) The holder shall calculate a counterparty exposure from the trade date as 100% of the credit equivalent amount of the contract for any over-the-counter derivatives contract for which no specific treatments have been prescribed in this Schedule or for any exchange-traded derivatives contract which is dependent on the issuer for performance.”; |
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(h) | by deleting the words “sub-paragraph (40)” in paragraph 3(43) and substituting the words “sub-paragraph (41)”; |
(i) | by inserting, immediately after the words “sub-paragraphs (11) to (23)” in paragraph 4(10), the words “and (35), (36) and (37)”; |
(j) | by inserting, immediately after the words “position in an equity derivative” in paragraph 4(35), the words “(whether or not to the equity derivative has been treated or included as an equity position or equity derivative position)”; |
(k) | by deleting the words “the absolute value of” in paragraph 4(77); |
(l) | by inserting, immediately after the word “higher” in paragraph 4(81), the words “of the absolute value”; |
(m) | by deleting the words “sub-paragraph (77)” in paragraph 4(83) and substituting the words “sub-paragraph (81)”; |
(n) | by deleting the words “the net position” in paragraph 5(2) and substituting the words “the absolute value of the net position”; |
(o) | by deleting the words “the net position” in paragraph 5(3) and substituting the words “the absolute value of the net position”; |
(p) | by deleting the words “counterparty’s margin account” wherever they appear in paragraph 5(4) and substituting in each case the words “customer’s margin account”; and |
(q) | by deleting the words “total debt equity exposure” in paragraph 5(5) and substituting the words “total debt exposure”. |