Glossary Term: Level 2 Credit Default

If, in relation to any Settlement Period (period J), a Trading Party’s Credit Cover Percentage as determined by the ECVAA becomes greater than 90%, irrespective of whether or not Settlement Period J falls in a Query Period or a Level 1 Credit Default Cure Period, then subject to an authorisation notice being in force in relation to that Trading Party (or if later, with effect from such notice being given):(a) the Trading Party shall be in “Level 2 Credit Default”; (b) the ECVAA shall, as soon as reasonably practicable after Gate Closure for Settlement Period J, notify the Trading Party that it is in Level 2 Credit Default and post a Level 2 Credit Default statement on the BMRS or the BSC Website in relation to the Trading Party; has the meaning given to that term in Section M3.3.1;

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