| 1. | Monitoring system. VASPs providing ETD Services must have and implement a comprehensive and robust monitoring, notification and close-out system for all open client ETD positions provided through the ETD Services, at all times. When designing and implementing such systems, VASPs providing ETD Services must act in the best interests of their clients, and ensure that the system is designed to assist their clients to prevent, to the furthest extent possible, avoidable losses and losses in excess of any values in the ETD Trading Account. |
| 2. | Early notification. VASPs providing ETD Services must monitor on an ongoing basis the ETD Trading Account of each client, and promptly notify the client that the amount of ETD Margin in the ETD Trading Account is at risk of falling below the required level, as specified in the ETD Services Agreement for any ETD position. |
| 3. | When notifying the client under Rule V.J.2, the VASP must act in the best interest of clients and ensure that the timing of the notification is designed to assist the client in maintaining the required level of ETD Margin at all times, and to avoid a close-out under Rule V.J.6 below. The notification must include a full re-statement of the applicable risks required to be stated in the ETD Services Agreement in Rule V.E.1. of this Exchange Services Rulebook. |
| 4. | If a VASP requires a client to contribute ETD Maintenance Margin, the VASP must act in the best interest of their client when notifying the client under Rule V.J.2 and ensure that the timing of the notification is designed to assist the client in contributing ETD Maintenance Margin of the required level to avoid a close-out under Rule V.J.6 below. |
| 5. | Margin call. VASPs providing ETD Services must monitor the ETD Trading Account of each ETD Client on an ongoing basis, and promptly notify the client if the amount of ETD Margin in the ETD Trading Account has fallen below the required level, as specified in the ETD Services Agreement for any ETD position. |
| 6. | Close-out. VASPs providing ETD Services must monitor the ETD Trading Account of each ETD Client on an ongoing basis. In the event the amount of ETD Margin in the ETD Trading Account has fallen below the required level specified in the ETD Services Agreement, and the client has not remedied such shortfall after having received the notifications required under Rules V.J.2 and Rule V.J.4, the VASP providing ETD Services must close out all necessary ETD positions of the client required to ensure, to the furthest extent possible, the client does not purposefully incur liabilities in excess of the amounts in ETD Trading Account where avoidable. |
| 7. | Price feeds. VASPs providing ETD Services must ensure the reliability of all price feeds and/or other information used in relation to the ETD Services including, but not limited to, that VASPs must not rely on one source of information, and must validate the price and/or other information used in relation to the ETD Services from multiple sources. Such sources must be sufficiently diversified and independent of each other such that an error in, or failure of, one source, will not cause an error in, or failure of, another source. |