1.1. This document specifies Cash Market Clearing Procedures that Members must follow to comply with provisions of the Securities Clearing Centre Rules.

1.2. The Clearing House may, after obtaining the Authority's approval, waive any person’s obligations to the provisions of these procedures either based on a request from the relevant person or on its own initiative.

1.3. The expressions and terms in these Procedures carry the same meaning as they do in the Capital Market Law, and Glossary of Defined Terms Used in the Exchange Rules unless the text explicitly notes an alternate meaning.

1.4. These Procedures will enter into effect as per its approval resolution.

1.5. Clearing Member stated in these Procedures covers General Clearing Member and Direct Clearing Member; Member stated in these Procedures means Clearing Member and Non-Clearing Member together.

1.6. In these Procedures, the following terms shall have the following meanings unless context otherwise requires:

Cash Market: market in which the assets are traded for cash and immediate delivery (up to T+5).

Clearing House System: means an application interface to process clearing operations and get related reports at Clearing House.

Delta Hedge: means Margin methodology used by Clearing House for the calculation of Margin requirement based on the portfolio-based risk management algorithm.

End-Client: a person that the relevant Depository Centre Account is opened under its name.

External Account ID: means a unique code composed of identifier published by Clearing House, SARIE Code and account number of the Bank in SARIE.

IBAN: means International Bank Account Number. Intended

Settlement Date: intended settlement date of the Open Positionز

Mark-to-Market: revaluation of the Open Positions and/or Collateral for a specific account with the prices determined by the Clearing House.

Standard Portfolio Analysis of Risk (SPAN): means a methodology for calculating portfolio-based Margin requirements.

Standard Settlement Instructions: the set of information that facilitate the processing of securities and/or cash transactions between accounts in accordance with Section (10) of these Procedures.

Stress Testing: means estimation of credit exposures that would result from the realization of extreme price changes.

2.1. An applicant that wishes to apply for a Direct Clearing Membership must meet, in addition to the conditions listed in Article 7 and 8 of the Securities Clearing Centre Rules, the following conditions:

• 2.1.1. have a minimum internal credit score of 5 based on Clearing House credit criteria methodology published on its website;

• 2.1.2. have an agreement with a Local Bank acting as paying agent for cash transactions including Collateral transfers.

4.1. Each Non-Clearing Member can only appoint one General Clearing Member to clear its transactions.

4.2. An applicant that wishes to apply for a Non-Clearing Membership must meet the conditions listed in Article 25 of the Securities Clearing Centre Rules.

5.1. Upon approval by the Clearing House, the applicant must pay the membership fee and Upfront Default Fund Contribution. Details of required documentation and relevant deadlines for membership application process shall be published on the Clearing House’s website.

5.2. After the conditions stipulated in Paragraph (5.1) of these Procedures are fulfilled, the membership will be activated in the Clearing House System.

6.1. The Clearing House will submit invoices to Members on a periodic basis and defines deadline for payment accordingly.

6.2. The Clearing House shall publish all fee types and their calculation method at the Clearing House’s website.

6.3. The Clearing House shall notify Members, at least, 30 Calendar days before imposing new fees or changing the fees stipulated in Paragraph (6.2) of these Procedures.

7.1. The Clearing House will facilitate settlement of Open Positions subject to Pass Through service, in accordance with Section (13) of these Procedures.

8.1. Clearing House shall publish notices on its website for clarification and details related to these Procedures.