Regulation 10 Extent to which charge granted in favour of recognised investment exchange to be treated as market chargeI1

it is a charge over property provided as margin in respect of market contracts entered into by the exchange for the purposes of or in connection with the provision of clearing services F1or over property provided as a default fund contribution to the exchange;

in the case of a recognised UK investment exchange, it secures the obligation to pay to the exchange F2any sum due to the exchange from a member or designated non-member of the exchange or from a recognised clearing house F3or from a recognised CSD or from another recognised investment exchange in respect of unsettled market contracts to which the member, designated non-member F4or recognised body is a party under the rules referred to in paragraph 12 of the Schedule to the Recognition Requirements Regulations; and

in the case of a recognised overseas investment exchange, it secures the obligation to reimburse the cost (other than fees and other incidental expenses) incurred by the exchange in settling unsettled market contracts in respect of which the charged property is provided as margin.

it is a charge of the kind described in paragraph (1); or

it is a Talisman charge and secures an obligation of either or both of the kinds mentioned in paragraph (3).

the obligation of the chargor to reimburse The Stock Exchange for payments (including stamp duty and taxes but excluding Stock Exchange fees and incidental expenses arising from the operation by The Stock Exchange of settlement arrangements) made by The Stock Exchange in settling, through Talisman, market contracts entered into by the chargor; and

the obligation of the chargor to reimburse The Stock Exchange the amount of any payment it has made pursuant to a short term certificate.