Schedule 11, Part 5, paragraph 33

The sixth stabilisation option is to make one or more variation instruments. A variation instrument is an instrument that makes provision to reduce or cancel a variation margin payment that a CCP would have otherwise paid to a clearing member of the CCP. The power under this paragraph may be exercised only for the purpose of recovering losses arising as a result of a clearing member defaulting on the member’s obligations to the CCP. The power under sub-paragraph (1) does not apply to a clearing member— which falls within Article 1(4) or (5) of EMIR, or in relation to which a direction under regulation 3(1)(f) of the Equivalence Determinations for Financial Services and Miscellaneous Provisions (Amendment etc) (EU Exit) Regulations 2019 (S.I. 2019/541) is in force. In this paragraph, a “variation margin payment” means a payment reflecting an increase in the market value of a clearing member’s position in the market.

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Source: legislation.gov.uk · retrieved 2026-09-04