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The Clearing Agreement serves as the foundational document governing the relationship between clearing houses and their members in the UAE financial markets. It is essential for entities seeking to participate in clearing activities within the UAE's sophisticated financial infrastructure. The agreement must comply with UAE Federal Law No. 14 of 2018 (UAE Central Bank Law) and related regulations, while incorporating specific requirements for risk management, default procedures, and settlement mechanisms. This Clearing Agreement is particularly crucial given the UAE's position as a major financial hub, requiring robust frameworks for both conventional and Islamic financial transactions. The document typically includes detailed operational procedures, compliance requirements, and risk management protocols tailored to the UAE regulatory environment.

1. Parties: Identification of the clearing house and clearing member

2. Background: Context of the agreement and brief description of the clearing services

3. Definitions and Interpretation: Comprehensive list of defined terms and interpretation rules

4. Membership Requirements: Eligibility criteria and ongoing membership obligations

5. Clearing Services: Description of clearing services provided and accepted instruments

6. Rights and Obligations: Core responsibilities of both parties

7. Financial Requirements: Capital requirements, fees, and payment obligations

8. Risk Management: Risk management framework and procedures

9. Default Procedures: Events of default and consequential actions

10. Margin Requirements: Initial and variation margin calculations and procedures

11. Settlement Procedures: Process and timing for settlement of cleared transactions

12. Regulatory Compliance: Compliance with UAE laws and regulations

13. Representations and Warranties: Standard and specific representations by both parties

14. Confidentiality: Protection and handling of confidential information

15. Term and Termination: Duration, termination events, and consequences

16. Dispute Resolution: Governing law and dispute resolution procedures

17. General Provisions: Standard boilerplate clauses