NPRR1112  Elimination of Unsecured Credit Limits

This Nodal Protocol Revision Request (NPRR) eliminates Unsecured Credit Limits. Unsecured Credit Limits are offset against Total Potential Exposure Any (TPEA) and thereby reduce the Financial Security available to offset potential future default uplift amounts. Although Unsecured Credit Limits are deleted in this NPRR, acceptable guarantors, which currently require an Unsecured Credit Limit, may still be used for provision of financial statements and determination of compliance with minimum capital requirements. In addition, consistent with provisions for Securitziation Default Charge escrow deposits, this NPRR clarifies that letters of credit used for Financial Security must be drawn on a U.S. domestic bank or a domestic office of a foreign bank.