Amendments to the Cross-Product Credit Support Annex
7. This clause 7 shall apply in respect of Other Physical Commodities only.
7.1 For each Relevant Transaction whereunder a Party purchases Other Physical
Commodities from the other Party, the full settlement amount of such Relevant
Transaction shall constitute Exposure with effect from the relevant Trigger date.
7.2 Prior to such Trigger date only mark-to-market movements / replacement costs,
as applicable, shall be considered when calculating the Exposure.
7.3 Other Physical Commodities shall, for the purposes of this clause 7, mean any
physically settled commodities not delivered by pipeline, electricity network / grid, or
trading account transfer; and shall include, but not be limited to, coal, other coal
products, petroleum coke (pet coke) and Liquefied Natural Gas (LNG).
7.4 Quantities used when calculating Exposures shall be those specified in the
Relevant Transaction but shall be replaced with the actual quantity, specified in the
Bill of Lading, upon this becoming known.
7.5 The coal quality used when calculating Exposures shall be the specified quality,
as detailed in the Relevant Transaction.
7.6 When calculation Exposures freight costs shall be as specified in the Relevant
Transaction.
7.7 In the event of a dispute the
[ ] undisputed amount, or the
[ ] full amount
[ ] the calculation as specified in the relevant transaction as applicable
shall be used when calculating the Exposure.
Product
Coal
Shipping /
Transportation
Type
FOB
When Cargo is deemed
Physical
Trigger date
First Day of Loading
Window
First Day of Discharge
Window
First Day of Loading
Window
First Day of Loading
Window
First Day of Discharge
Window
First Day of Loading
Window
First Day of Loading
Window
First Day of Loading
Window
First Day of Loading
Window
First Day of Loading
Window
As per confirm
14 Business Days Prior to Cargo being
deemed Physical
30 Business Days Prior to Cargo being
deemed Physical
14 Business Days Prior to Cargo being
deemed Physical
14 Business Days Prior to Cargo being
deemed Physical
30 Business Days Prior to Cargo being
deemed Physical
14 Business Days Prior to Cargo being
deemed Physical
10 Business Days Prior to Cargo being
deemed Physical
10 Business Days Prior to Cargo being
deemed Physical
10 Business Days Prior to Cargo being
deemed Physical
10 Business Days Prior to Cargo being
deemed Physical
As per confirm
Coal
DES
Coal
CIF/ CFR
LNG
FOB
LNG
DES
LNG
CIF/ CFR
LPG
FOB
LPG
DES
LPG
CIF/ CFR
Petcoke
FOB
Petcoke
DES
Petcoke
CIF/ CFR
Other [please
specify]
Other [please
specify]
Other [please
specify]
Uncovered
Transactions
Uncovered
Transactions
Uncovered
Transactions
[please specify]
First Day of Loading
Window
[please specify]
10 Business Days Prior to Cargo being
deemed Physical
[please specify]
[please specify]
[please specify]
[please specify]
[please specify]
[please specify]
[please specify]
[please specify]
[please specify]
[please specify]
[please specify]
[please specify]
[please specify]
[please specify]
[please specify]
[please specify]
Definitions:Shipping / Transportation Type
FOB
-
Free on Board - [Standard definition]
CIF/ CFR
definition]
-
Cost, Insurance and Freight / Carriage & Freight - [Standard
DES
-
Delivered ex -ship- [Standard definition]