Overview

Limits and conditions can be set by Clearing Brokers on agreements in Docs. Clearing Brokers may set limits and conditions at any point in the agreement lifecycle until an agreement is terminated.

Based on Clearing Broker inputs, Docs will automatically generate and immediately issue a Section 2 Notice for:

1. Executed agreements
2. In-flight agreements (Composition and Execution), upon agreement execution

Managing Limits and Conditions

Limits and conditions can only be set by subscribers to the Give-in Limit Repository with the Limits and Conditions Composer user role at a Clearing Broker party. Please refer to the User Permissions - Limits & Conditions Composer article for more information.

Within an agreement, navigate to the Limits & Conditions Workstream. Clicking on the Pencil icon will set the workstream to Edit Mode.

In Edit Mode, the workstream consists of three sections:

Agreement Conditions

The following standard condition types can be set within the Agreement Conditions section of the workstream:

• Agreement Suspension
• Trade by Trade Review
• Custom (free-text)

Agreement Limits

The following standard limit types can be set within the Agreement Limits section of the workstream:

• Daily Max Contracts (number)
• Daily Initial Margin (number and currency)

Notice Preview

Before publishing the Limits & Conditions Workstream, you may view the system-generated legal language of the Section 2 Notice by clicking on the "Preview Email" button.

Publishing the Workstream

Once all workstream updates are completed, clicking on the Publish button will save all changes. At this point, the system will evaluate whether a Section 2 Notice should be issued for this agreement.

Docs will generate and immediately issue a Section 2 Notice e-mail to Execution Phase Approvers and Limits & Conditions Composers at all agreement parties for:

1. Executed agreements
2. In-flight agreements (Composition and Execution), upon agreement execution

The Effective Date of all applicable limits and conditions are automatically set to the date and time that the Section 2 Notice is sent.

A copy of the issued Section 2 Notice can be found in final section of the Agreement PDF download.

Docs will not issue Section 2 Notices for:

1. Non-executed agreements
2. Suspended agreements (agreements with the "Agreement Suspension" condition)