(1) For the purposes of this Section, Exposure excludes:
(a) claims and other assets required to be deducted for the purposes of calculating an Authorised Person's Capital Resources;
(b) a transaction entered into by an Authorised Person as depository or as agent that does not create any legal liability on the part of the Authorised Person;
(c) claims resulting from foreign exchange transactions where an Authorised Person has paid its side of the transaction and the countervalue remains unsettled during the two business days following the due payment or due delivery date. After two business days the claim becomes an Exposure;
(d) claims arising as a result of Money transmission, payment services, clearing and settlement, correspondent banking or Financial Instruments clearing, settlement and custody services to clients, delayed receipts in funding and other Exposures arising from Client activity which do not last longer than the following business day;
(e) in the case of the services outlined in (d) intra-day Exposures to Financial Institutions who provide these services are excluded;
(f) claims resulting from the purchase and sale of Securities during settlement where both the Authorised Person and the Counterparty are up to five business days overdue in settling. The five business days include the due payment or due delivery date. After five business days, the claim becomes an Exposure; and
(g) Exposures that are guaranteed by the Authorised Persons Parent in accordance with Rule 4.15.18.
(2) For the purposes of this Section, Exposure to a central counterparty which carry a 0% CCR in accordance with Section 4.8 are excluded.