Common use of Roll Over Clause in Contracts

Roll Over. 4.1. The Client shall perform under and settle all Margin Transactions as set out in the Applicable Regulations and Market Rules and by applicable settlement deadlines. The Client agrees that where it fails to close out Margin Positions by the end of a trading day as required by the Market Rules or the Margin Trading Manual, the Client will be deemed to agree to enter into a Roll-Over Transaction on the terms and conditions set out below. 4.2. BCS may, in its sole discretion, enter into Roll-Over Transactions for or with the Client. All cash and/or securities acquired as a result of, or in connection with Roll-Over Transactions, shall be Eligible Collateral subject to the terms of this Schedule. The Client understands and agrees that BCS may elect not to enter into Roll-Over Transactions for the Client. 4.3. BCS will be entering into Overnight REPOs or Overnight Reverse REPOs at the closing prices for Margin Securities at a market where such Margin Securities are predominantly traded. BCS reserves the right to decide which securities in the account of the Client are to be subject to a Roll-Over Transaction and will normally select the most liquid securities according to the prevailing market conditions. 4.4. BCS will be entering into Overnight Currency Swaps at foreign exchange rates quoted by the central banks in the principal financial centre of the country of which the currency in which the Overnight Currency Swap is denominated is the official currency. 4.5. The Client agrees that BCS may modify the roll-over procedures in its sole and absolute discretion without the Client’s consent. BCS will notify the Client prior to the date such modification is to take effect.