Regulations Governing Internal Operating Systems and Procedures for Banks Conducting Financial Derivatives Business Article 21

A financial derivative transaction contract entered by and between a bank and counterparty may stipulate the method for settling amount payable in case of early termination of contract and should reflect and calculate market value at the time of transaction as well as the value of the terminated transaction upon expiration subsequent to the date of early termination.The terms and conditions for early termination of derivative transaction and method for settling amount payable mentioned in the preceding paragraph shall be fully disclosed to the counterparty in relevant contract documents or in other manners.