Swap-It is a Derivatives Clearinghouse which clears Credit Derivatives for its members. It has 3 members - A,B &C. Member A is a domestic broker-dealer with aggressive trading strategies; Member B is a large regulated bank that aims to maintain a flat book of trades, with limited risk; Member C is a securities subsidiary of an international Bank, which trades opportunistically. Swap-It will apply the following Default Waterfall, per its rulebook.