(PROCEDURE XV) 352 charge exceeds the threshold, and (2) the 1-day volatility charge allocated to that asset group or subgroup. All MLA charges for each of the equities subgroups shall be added together to result in one MLA charge for the equities subgroup. All MLA charges for each of the asset groups shall be added together to result in a total MLA charge. The Corporation may apply a downward adjusting scaling factor to the total MLA charge based on the ratio of calculated market impact cost to a portion of the applicable volatility charge, where a higher ratio would trigger a larger downward adjustment of the MLA charge and a lower ratio would trigger no downward adjustment of the MLA charge. (3) For Other Transactions The greater of (i) 2-1/2% of such Member’s average daily settlement debits and credits other than CNS, Mutual Fund Services and Envelope Settlement Service debits and credits and (ii) 5% of such Member’s average daily settlement debits other than CNS, Mutual Fund Services and Envelope Settlement Service debits, for other transactions (Other Transactions) as determined by the Corporation from time to time, adjusted for broker/dealer Members by a factor that shall be calculated as follows: Average Daily Settlement Debits As Determined by the Corporation Excess Net Capital The factor calculation shall be adjusted in order to provide a minimum of one with a maximum of three. I.(B) Additional Clearing Fund Formula (1) Additional Deposits for Members on the Watch List Any Member or Limited Member who is placed on the Watch List shall be required to make such additional Clearing Fund deposits as determined by the Corporation on the same day as requested by the Corporation within such timeframe as required by the Corporation from time to time. (2) Excess Capital Premium (a) The Corporation shall collect an additional payment (“Excess Capital Premium”) if a Member’s Volatility Charge, when divided by its Net Capital, for Members that are broker-dealers, or Equity Capital, for all other Members, is greater than 1.0 (the “Excess Capital Ratio”). (b) An Excess Capital Premium shall be calculated as the product of: (a) the amount by which the Member’s Volatility Charge exceeds its Net Capital or Equity (PROCEDURE XV) 353 Capital, as applicable, multiplied by (b) its Excess Capital Ratio, which shall be no more than 2.0. For purposes of calculating an Excess Capital Premium, the Corporation shall use, as applicable, the Net Capital amount reported by a Member on its most recent Form X-17-A-5 (Financial and Operational Combined Uniform Single (“FOCUS”) Report), or the Equity Capital amount reported by a Member on its most recent Consolidated Report of Condition and Income (“Call Report”). 7 The Corporation may, in its sole discretion, accept an updated Net Capital or Equity Capital amount provided by a Member prior to the issuance of its next applicable financial report for purposes of calculating an Excess Capital Premium. (c) The Corporation may waive the collection of an Excess Capital Premium of a Member in exigent circumstances when the Corporation, in its sole discretion, observes extreme market conditions or other unexpected changes in factors such as market volatility, trading volumes or other similar factors. In determining whether it is appropriate to waive the collection of an Excess Capital Premium in such circumstances, the Corporation would review all relevant facts, circumstances and other information available to it at the time of such determination, including the degree to which a Member’s capital position and trading activity compare or correlate to the prevailing exigent circumstances and whether the Corporation can effectively address the risk exposure presented by a Member without the collection of the Excess Capital Premium from that Member. The collection of an Excess Capital Premium may be waived by a Managing Director in the Group Chief Risk Office of the Corporation, and such waiver shall be documented in a written report that is made available upon request to the Member impacted by the waiver. (3) Backtesting Charge The Corporation may require a Member to make an additional Clearing Fund deposit to mitigate exposures to the Corporation caused by settlement risks that may not be adequately captured by the Corporation’s portfolio volatility model (“Backtesting Charge”). The Corporation may assess this charge on the start of the day portfolio , as needed, to enable the Corporation to achieve its backtesting coverage target. The Backtesting Charge may apply to Members that have 12-month trailing backtesting coverage below the 99 percent backtesting coverage target. The Backtesting Charge shall generally be equal to the Member’s third largest deficiency that occurred during the previous 12 months. The Corporation may in its discretion adjust such charge if the Corporation determines that circumstances particular to a Member’s settlement activity and/or market price volatility warrant a different approach to determining or applying 7 If a Member is not required to file a FOCUS Report or a Call Report, the Corporation shall use the Net Capital or Equity Capital amount, as applicable, provided on the Member’s most recent financial statements or equivalent reporting delivered to the Corporation pursuant to Section 2.A of Rule 2B.