eligible agreement

173an agreement between a post-trade risk reduction service provider and a market participant:

1. (a) that identifies the point in time that a PTRRS becomes legally binding;
2. (b) that includes legal documentation describing how derivatives or positions submitted for inclusion in the PTRRS are terminated, replaced or modified, as applicable; and
3. (c) in relation to which, prior to entry into force, the post-trade risk reduction service provider:
   1. (i) identifies the risk tolerance of a participant, including, where relevant, specific limits for counterparty risk, market risk and cash payment tolerance;
   2. (ii) agrees with the participants that the risk limits referred to in (i) will be incorporated into the PTRRS exercise;
   3. (iii) may grant additional time, when requested, to the participants to add derivatives or positions eligible for termination, reduction or modification, as applicable, in order to:
      1. (A) adjust the PTRRS to the risk tolerance set under (i); and
      2. (B) maximise the efficiency of the PTRRS; and
   4. (iv) links the derivatives submitted for the PTRRS and provides to each participant a proposal including the following information, where applicable:
      1. (A) the identification of the counterparties affected;
      2. (B) the related change to the combined notional value of the derivatives;
      3. (C) the variation of the combined notional amount compared to the risk tolerance specified; and
      4. (D) new derivatives transactions referrable to risk tolerances submitted by participants.