Collateral

To cover your obligations you may use the following collateral:

• Cash (GBP) in your Client Collateral and Settlement Account with NOS in our settlement bank DnBNOR in Oslo.

The UK Gas market is quoted and settled in GBP (pence/therm) and the member has to cover the settlements with cash on the Collateral and Settlement Account. The cash held on this account can be used to cover the margin requirements and base collateral requirement in addition to the settlements. The cash deposit is pledged to NOS. The accounts are regulated by the appendix 3 to the Rulebook.

• Stand by Letter of Credit.

The members may use a Stand by Letter of Credit (LOC) in GBP to cover the margin requirements and Base Collateral requirement. The Letter of Credit has to be on the NOS standard wording as per the appendix 4 to the Rulebook. The LOC can not be used to cover settlements.

Excessive Collateral

The excessive cash collateral is shown on the Daily Summary Report as well as in the Clearing Online Application. Withdrawal is organised through the settlement bank.