ITBC Swap
(d) ITBC Swap. The term Intended to be Cleared Swap or ITBC Swap means a swap that meets the following conditions, as applicable: (1) At least one of the parties to the swap is a swap entity; (2) The swap is of a type accepted for clearing by a derivatives clearing organization registered with the Commission (DCO) or a clearing organization that is currently exempted from registration by the Commission pursuant to section 5b(h) of the Act (Exempt DCO); (3) The swap is intended by the parties to be cleared contemporaneously with execution; (4) If the swap is intended to be cleared on a DCO, the swap entity and its counterparty are either clearing members of the DCO to which the swap will be submitted, or have entered into an agreement with a clearing member of such DCO for clearing of swaps of the same type as the swap intended to be cleared; (5) If the swap is intended to be cleared on an Exempt DCO, the swap entity and its counterparty must be eligible to clear the swap on the Exempt DCO pursuant to the terms and conditions of the Order of Exemption from Registration issued by the Commission regarding such Exempt DCO; (6) The swap entity does not require its counterparty or its clearing member (if any) to enter into a breakage agreement or similar agreement as a condition to executing the swap; (7) If the swap is not executed on or pursuant to the rules of a designated contract market (DCM), swap execution facility (SEF), or a trading facility currently exempted from registration as a swap execution facility by the Commission pursuant to section 5h(g) of the Act (Exempt SEF), the swap entity takes reasonable measures to ensure that both parties submit the swap for clearing to a DCO or Exempt DCO as quickly after execution as would be technologically practicable if fully automated systems were used, and either: (i) The parties have agreed prior to or at execution that if such swap is rejected from clearing, the swap is deemed to be void ab initio, or (ii) The parties, prior to execution, have entered into a breakage agreement or similar arrangement that addresses the disposition of such rejected swap and includes arrangements that will permit a Swap Entity to comply with the requirements of subparts H and I of this part with respect to the rejected swap; (8) If the swap is executed on or pursuant to the rules of a DCM, SEF, or Exempt SEF, the rules of the DCM, SEF, or Exempt SEF provide that if the swap is rejected from clearing, such swap is deemed to be void ab initio; provided that if the swap is executed on or pursuant to the rules of an Exempt SEF and the rules of the Exempt SEF do not provide for a swap rejected from clearing to be deemed void ab initio: (i) The parties have agreed prior to or at execution that if such swap is rejected from clearing, the swap is deemed to be void ab initio, or (ii) The parties, prior to execution, have entered into a breakage agreement or similar arrangement that addresses the disposition of such rejected swap and includes arrangements that will permit a Swap Entity to comply with the requirements of subparts H and I of this part with respect to the rejected swap.