their obligations under non-cleared transactions against obligations to CMs under cleared transactions;
LCH.C is not a party to non-cleared transactions between the defaulting CM and its customers.
v. Whether affiliate and third-party liens or cross-margining and netting arrangements in respect of non-cleared transactions affect the portability analysis;
vi. Whether the defaulting CM’s contractual agreements with the customer are binding upon the transferee CM and such customer upon any transfer of the customer’s positions and initial and variation margin, or whether the transferee CM and such customer can (or must) execute a new set of documentation;
The customer must execute any documentation necessary to become a customer of the CM receiving the positions.
vii. In connection with a transfer of customer positions and initial and variation margin (and any associated contractual relationships) to a non-defaulting CM, any rights of customers to elect not to transfer the associated margin, and instead, to apply such margin as a setoff against other amounts that may be payable to the defaulting CM (while separately posting new IM to the transferee CM); and
The effects on the portability analysis of (a) IM at the CCP for customer positions being posted on a gross or net basis (as applicable), (b) the existence of Dealer Margin held at the defaulting CM, and (c) non-cleared trades between the defaulting CM and its customers being “in-the-money” or “out-of-the- money” (as applicable) to the CM.