Common use of Margin Arrangements Clause in Contracts

Margin Arrangements. 2.1 In relation to margined transactions, you will pay or deliver to us on demand such sums or property by way of deposit or margin as may from time to time be required. In relation to exchange traded transactions, such deposit or margin shall be of such amount or value as shall be determined by us (which may exceed but shall not be less than that required under the rules of the relevant exchange or clearing house). We reserve the right to vary our margin requirements at any time and without notice to you. 2.2 Deposits or margin must be provided to us in such manner and in such form as we may request. Acceptable deposit or margin can include cash or securities or other collateral approved by us in advance. 2.3 You are responsible for maintaining appropriate arrangements with us at all times for the communication of margin calls. If we are unable to contact you or if you fail to provide margin to us in the required time, we may, without prejudice to any other rights or remedies available to it, exercise our rights under paragraphs 2.4 and 2.5 below. 2.4 If you: (a) fail to make any payment (including any deposit or margin payment) as and when it becomes due, or (b) fail to perform any obligation due to us (or agents used by us) or where any contracts entered into by you under this Agreement exceed the credit or any other limit placed upon your dealings pursuant to this Agreement; (c) are otherwise in breach of this Agreement; (d) if you die or become insolvent or unable to pay your debts; then we may in our absolute discretion exercise all or any of the following remedies: (e) at any time and without notice bring to an end all or any of your contracts on the basis of the then prevailing quotations or prices in the relevant markets or, if none, at such levels as we consider fair and reasonable; (f) exercise any rights of set-off; (g) retain any funds, investments (including any interest or other payment payable on them) or other assets due to you (whether held as collateral or otherwise) and sell them without notice to you at such price and in such manner as we in our absolute discretion decide, applying the proceeds of sale and discharging the costs of sale to the sums secured by this paragraph; (h) charge you interest on any money due, from close of business on the date when monies first fell due until the date of actual payment at a rate not exceeding the rate at which we would be charged for borrowing equivalent funds from our own bank. In the case of unpaid deposits or margin, we will where possible take reasonable steps to advise you before exercising our rights to bring an end to contracts pursuant to this paragraph but without prejudice to our right to take such action at any time and without notice. We will in any event close out the position if you fail to meet a call for margin payment on five consecutive business days. If you fail to execute any document required to be executed to liquidate your position, then you appoint any of our directors for the time being as your attorney with full powers to execute any such document and take all steps necessary to liquidate your position. 2.5 We shall not be liable to you in respect of any choice made by us in selecting the investments liquidated. The proceeds of liquidation (net of costs) will be applied in or towards the discharge of your liabilities and we will account to you for any balance. If such proceeds are insufficient to cover the whole of your liabilities, you will remain liable for the balance. 2.6 Any trade placed by you will be binding on you notwithstanding that at the time you placed that trade you did not have sufficient margin in your account should we, at our sole discretion, decline to make void that trade.

Margin Arrangements. 2.1 In relation to margined transactions, you will pay or deliver to us on demand such sums or property by way of deposit or margin as may from time to time be required. In relation to exchange traded transactions, such deposit or margin shall be of such amount or value as shall be determined by us (which may exceed but shall not be less than that required under the rules of the relevant exchange or clearing house). We reserve the right to vary our margin requirements at any time and without notice to you. 2.2 Deposits or margin must be provided to us in such manner and in such form as we may request. Acceptable deposit or margin can include cash or securities or other collateral approved by us in advance. 2.3 You are responsible for maintaining appropriate arrangements with us at all times for the communication of margin calls. If we are unable to contact you or if you fail to provide margin to us in the required time, we may, without prejudice to any other rights or remedies available to it, exercise our rights under paragraphs 2.4 and 2.5 below. 2.4 If you: (a) fail to make any payment (including any deposit or margin payment) as and when it becomes due, or (b) fail to perform any obligation due to us (or agents used by us) or where any contracts entered into by you under this Agreement exceed the credit or any other limit placed upon your dealings pursuant to this Agreement; (c) are otherwise in breach of this Agreement; (d) if you die or become insolvent or unable to pay your debts; then we may in our absolute discretion exercise all or any of the following remedies: (e) at any time and without notice bring to an end all or any of your contracts on the basis of the then prevailing quotations or prices in the relevant markets or, if none, at such levels as we consider fair and reasonable; (f) exercise any rights of set-off; (g) retain any funds, investments (including any interest or other payment payable on them) or other assets due to you (whether held as collateral or otherwise) and sell them without notice to you at such price and in such manner as we in our absolute discretion decide, applying the proceeds of sale and discharging the costs of sale to the sums secured by this paragraph; (h) charge you interest on any money due, from close of business on the date when monies first fell due until the date of actual payment at a rate not exceeding the rate at which we would be charged for borrowing equivalent funds from our own bank. In the case of unpaid deposits or margin, we will where possible take reasonable steps to advise you before exercising our rights to bring an end to contracts pursuant to this paragraph but without prejudice to our right to take such action at any time time (i) and without notice. We will in any event close out the position if you fail to meet a call for margin payment on five consecutive business days. If you fail to execute any document required to be executed to liquidate your position, then you appoint any of our directors for the time being as your attorney with full powers to execute any such document and take all steps necessary to liquidate your position. 2.5 We shall not be liable to you in respect of any choice made by us in selecting the investments liquidated. The proceeds of liquidation (net of costs) will be applied in or towards the discharge of your liabilities and we will account to you for any balance. If such proceeds are insufficient to cover the whole of your liabilities, you will remain liable for the balance. 2.6 Any trade placed by you will be binding on you notwithstanding that at the time you placed that trade you did not have sufficient margin in your account should we, at our sole discretion, decline to make void that trade.