Ordinance
on Financial Market Infrastructures and Market Conduct in Securities and Derivatives Trading
(Financial Market Infrastructure Ordinance, FinMIO)

(Art. 110 Fin­MIA)

¹ The ex­change of ini­tial mar­gins and vari­ation mar­gins may be waived if:

a.

the col­lat­er­al to be ex­changed would amount to less than CHF 500,000;

b.

small non-fin­an­cial coun­ter­parties are in­volved in the trans­ac­tion.

² The ex­change of ini­tial mar­gins may be waived if such mar­gins would have to be provided for the cur­rency com­pon­ents of cur­rency de­riv­at­ives where the nom­in­al amount and in­terest in one cur­rency are ex­changed against the nom­in­al amount and in­terest in an­oth­er cur­rency at a pre­defined time and ac­cord­ing to a pre­defined meth­od.

³ If one of the coun­ter­parties to a de­riv­at­ives trans­ac­tion is a covered bond is­suer or a leg­al en­tity of a cov­er pool for covered bonds, that coun­ter­party may, sub­ject to the con­di­tions set out in Art­icle 86 para­graph 3, agree with its coun­ter­party that:

a.

an ex­change of ini­tial mar­gins will be dis­pensed with; or

b.

the covered bond is­suer or the leg­al en­tity of a cov­er pool for covered bonds will pay no vari­ation mar­gins, and the coun­ter­party will pay vari­ation mar­gins in cash.