When does a Credit Default occur?

The Credit Default processes are triggered when a Party’s Credit Cover Percentage (CCP) exceeds a given threshold. CCP represents a Party’s yet-to-be-paid Trading Charges as a percentage of the collateral it has lodged as Credit Cover.

The Level 1 Credit Default process is triggered when the CCP exceeds 80% and the Level 2 Credit Default process is triggered when the CCP exceeds 90%.