Paragraph 2 I1

United Kingdom

(1)

The rules must provide for all rights and liabilities between those party as principal to unsettled market contracts to which the defaulter is party as principal to be discharged and for there to be paid by one party to the other such sum of money (if any) as may be determined in accordance with the rules.

(2)

The rules must further provide—

(a)

for the sums so payable in respect of different contracts between the same parties to be aggregated or set off so as to produce a net sum, and

(b)

for the certification by or on behalf of the exchange of the net sum payable or, as the case may be, of the fact that no sum is payable.

(3)

The rules may make special provision with respect to, or exclude from the provisions required by sub-paragraphs (1) and (2), contracts of any description prescribed for the purposes of this sub-paragraph by regulations made by the Secretary of State.

F1(4)

The reference in sub-paragraph (1) to rights and liabilities between those party as principal to unsettled market contracts does not include rights and liabilities—

(a)

in respect of margin; or

(b)

arising out of a failure to perform a market contract.

Annotations

Textual amendments

F1: Schedule 21, para. 2(4) added by S.I. 1991/880, reg. 17

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F1: Sch. 21 repealed (1.12.2001) by S.I. 2001/3649, arts. 1, 75(p)