Paragraph 1 I1
United Kingdom
The exchange must have default rules which, in the event of a member of the exchange appearing to be unable to meet his obligations in respect of one or more market contracts, enable action to be taken in respect of unsettled market contracts to which he is a party.
The rules may authorise the taking of the same or similar action in relation to a member who appears to be likely to become unable to meet his obligations in respect of one or more market contracts.
The rules must enable action to be taken in respect of all unsettled market contracts, other than those entered into by a recognised clearing house for the purposes of or in connection with the provision of clearing services for the exchange.
As regards contracts F1falling within section 155(2)(b) above, the rules must contain provision corresponding to that required by paragraphs 9 to 11 below in the case of a UK clearing house.
As regards contracts falling within section 155(2)(a) above the rules must contain provision complying with paragraphs 2 and 3 below.
Annotations
Textual amendments
- F1
Words in Sch. 21 para. 1(4)(5) replaced (11.8.1998) by S.I. 1998/1748, reg. 5(1)(2)
Commencement
- I1
Sch. 21 wholly in force at 25.4.1991; Sch. 21 in force on 25.3.1991 insofar as is necessary to enable regulations to be made under para. 2(3) and wholly in force at 25.4.1991 see s. 215(2) and S.I. 1991/488, art. 2(2), 1991/878, art. 2, Sch.
Notes on Schedule 21
Textual amendments
- F1
Sch. 21 repealed (1.12.2001) by S.I. 2001/3649, arts. 1, 75(p)