105Loss of eligibility points for inactivity

105  Loss of eligibility points for inactivity

 (1) If a bidder does not meet its activity target (see subsection (3)) in a clock round (the current clock round), then the bidder’s eligibility points for the next clock round (the next clock round) will be reduced to a number calculated in accordance with subsection (2).

 (2) The number of a bidder’s eligibility points under subsection (1) for the next clock round is to be calculated as follows:

open formula E equals R over P close formula

(rounded up to the nearest integer)

where:

E is the bidder’s eligibility points for the next clock round.

R is the higher of:

 (a) the sum of the lot ratings of all lots of each product on which the bidder was active in the current clock round (see subsection (4)); or

 (b) the number calculated for the current clock round by:

 (i) starting with the sum of the lot ratings of all of the lots in the bidder’s start demand for each product; and

 (ii) adding the product of the lot rating and demand change for the bidder’s increase bids of each product; and

 (iii) subtracting the product of the lot rating and demand change for the bidder’s decrease bids of each product.

P is the eligibility requirement percentage that applied in the current clock round.

Example: A bidder’s eligibility points at the start of a clock round is 20,000. The eligibility requirement percentage for the clock round is 60%. This means the activity target (the number of eligibility points the bidder must be active for, in order to maintain 20,000 eligibility points for the following round) is 12,000 eligibility points. After the clock round, the bidder is active for only 10,000 eligibility points (based on its posted demands), so eligibility points will be reduced as a result of under‑activity.

 The bidder’s new eligibility points (E) will be current activity (R: 10,000) divided by the eligibility requirement percentage that applied in the clock round (P :0.6), which is 16,667 eligibility points.

 (3) The activity target, for a bidder during a clock round, means the figure obtained by multiplying the amount of the bidder’s eligibility points for that clock round by the eligibility requirement percentage set by the auction manager for that clock round, rounded down to the nearest integer.

 (4) If a bidder has a posted demand greater than zero for lots of a product for a clock round:

 (a) the bidder is active on the lots; and

 (b) the number of lots on which the bidder is active is the number of lots in the posted demand.

Subdivision D—Processing of bids