Capital Requirements

We recognize that markets are continually fluctuating. To ensure that our Members are sufficiently capitalized to deal with changing market conditions, we set capital requirements for Clearing Licenses. These capital requirements are set in line with estimated risk levels and are reviewed quarterly to reflect developments in the markets.

Irrespective of the minimum amounts of liable equity capital specified below, the actual amount of liable equity capital that we require our Clearing Members to demonstrate and maintain is equal to the higher amount of:

• Ten percent of the 30-day average of the total margin requirements or
• Ten percent of the 250-day average of the total margin requirements

The level of the liable equity capital is calculated on a quarterly basis at the end of March, June, September and December for the subsequent quarter.