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Glossary
 

Underlying Asset: Financial instrument or index constituting the subject matter of a Contract. 

Competent Authority: Authority or Authorities who have been legally vested with powers relating to the authorisation and supervision of the actions of Members, Clients and BME CLEARING. 

Contract Class: Contracts relating to the same Underlying Asset. 

Circular: Mandatory regulation, approved by BME CLEARING, which implements the Rule Book and the General Conditions. 

Client: Individual or legal entity holding an open Account in the General Register or in the Second-Tier Register. 

Clearing: Aggregation in a resulting net position of the cash payment or securities delivery obligations resulting from the Contracts registered in the corresponding Accounts. 

General Conditions: Conditions that develop and form an integral part of this Rule Book, establishing the terms and conditions applicable to the services and functions that BME CLEARING carries out in relation to the Contracts which constitute the purpose of its activity as a CCP. The General Conditions may set forth specific terms and requirements relating to the activity of Members and Clients as relates to the Contract to which they refer. 

Central Counterparty: Interposition in its proprietary account in relation to the clearing and settlement of obligations resulting from the participation of its Members in securities clearing and settlement systems or financial instruments recognised pursuant to Law 41/1999, of 12 November, on securities payments and settlement systems, and in respect of trades made on non-official markets. 

Contract: Generic name including all legal operations on tradeable securities and derivative financial instruments in relation to which BME CLEARING acts as CCP, as described in this Rule Book. 

Account: Any electronic support forming part of the Trades Register in which the Contracts and Trades relating to the account holder are booked, in addition to the resulting Positions and Margins. It is also a generic name for all Accounts held by a Member or Client in both the General Register and the Second-tier Register as appropriate.

Accounts in the General Register may be of the following classes: Daily Account, Proprietary Account, Sponsored Proprietary Account, Individual Client Account, Non-Segregated Clients Account and

Segregated Clients Account. Accounts in a Second-Tier Register may be of the following classes: Non-Segregated Account and Segregated Account.

Business Day: The day set forth as such in the schedule published by BME CLEARING prior to the start of each calendar year for each Contract Class. 

Central Counterparty: The entity performing Central Counterparty functions in accordance with the stipulations of Article 44 ter of Spanish Securities Market Law 24/1988 of July 28.

Margin/Collateral: Amount posted in favour of BME CLEARING or the Members, in accordance with the provisions of the present Rule Book and of other regulations applicable to the CCP, whose function is to cover the risk of Default on the obligations undertaken by Members and Clients. 

Contract Group: Contract Classes considered jointly for the purpose of applying applicable regulations and exigible Margins. The General Conditions of each Contract shall set forth the Contract Group to which they belong.

Default: Situation in which a Member or Client does not perform the obligations stipulated in the present rule Book and ancillary regulations hereof, thus incurring in any of the circumstances provided in Chapter 8 hereof.

Valuation Interval: Maximum and minimum price of the Underlying Asset used to calculate Margins.

Instruction: Mandatory regulation of specific application approved by BME CLEARING, which develops the General Conditions and Circulars. 

Financial Instrument: Generic name for all tradeable securities and derivative financial instruments referred to in Article 2 of Spanish Securities Market Law 24/1988, of 28 July, included in Contracts for which BME CLEARING acts as CCP, pursuant to this Rule Book and enabling provisions. 

Settlements:Generic name for all types of operations applied to determine amounts owed carried out in relation to Contracts and registered Trades, in accordance with this Rule Book and the General Conditions. 

BME CLEARING: BME CLEARING , S.A.U. 

Member: generic name which includes all kinds of Members among those defined in Chapter 2 hereof: Non-Clearing Member, Proprietary Non-Clearing Member, Individual Clearing Member and General Clearing Member.

Member Carrying a Second-Tier Register: Non-Clearing Member, or Individual or General Clearing Member, authorised by BME CLEARING to manage a Second-Tier Register.

Defaulting Member/Client: Member or Client which incurs in Default as provided in Chapter 8 hereof. 

Trade: Generic name for any type of Registration, Clearing or Settlement operation carried out to determine book-entries on Contracts where BME CLEARING acts as CCP, in accordance with the provisions of this Rule Book and complementary documentation. 

Position: All live Trades registered in an Account at any time. 

Registration: Act whereby BME CLEARING, for the purposes of developing its functions as a Central Counterparty, notes the details of a Trade in the corresponding Accounts of the General Register and, as the case may be, whereby Members Carrying a Second-Tier Register simultaneously note the details of the Trade in their Accounts of the Second-Tier Register. 

Trades Register: Term which includes the book entry registration system comprising the General Register and the Second-Tier Register. 

General Register: Trades registration system, managed by BME CLEARING, for Contracts and Trades registered in the Accounts opened by Members with BME CLEARING. 

Second-Tier Register: Trades registration system, managed by each Member Carrying a Second-Tier Register, for Contracts and Trades registered in the Accounts opened by Clients with such Members. 

Rule Book: The presentRule Book, which constitutes organisational and disciplinary regulation of the Securities Market, of mandatory compliance for all CCP participants. General Conditions of the Contracts are an integral part of the Rule Book.

Request for Registration: Act by which a Member, or Member acting on behalf of a Member, market or trading system where BME CLEARING acts as CCP, requests a Trade Registration from BME CLEARING. 

Chief CCP Supervisor: Person appointed by BME CLEARING entrusted with the duty of supervising the orderly conduct of CCP activities, applying the Rule Book and other applicable regulations. 

CCP Supervisor: Person entrusted with the duty of supervising the orderly conduct of CCP activities, applying the Rule Book and other applicable regulations by delegation of the Chief CCP Supervisor. 

Transaction: Act of matching two buy or sell orders in the electronic trading system, or accepting trades made directly between participants carried out in a market or trading system where BME CLEARING acts as CCP and which, once BME CLEARING has been notified by said market or trading system of the transaction and has confirmed it, are registered in the General Register. 

Transfer: Book-entry whereby the Registration of a Contract, a Trade, or of all or part of a Position, is changed from one Account to another. 

 

 

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