Regulation 11 Extent to which charge granted in favour of recognised clearing house to be treated as market chargeI1

it is a charge over property provided as margin in respect of market contracts entered into by the clearing house F1or over property provided as a default fund contribution to the clearing house;

in the case of a recognised central counterparty, it secures the obligation to pay to the recognised central counterparty any sum due to it from a clearing member, a client, an indirect client, a recognised investment exchange F3, a recognised CSD or recognised clearing house in respect of unsettled market contracts to which the clearing member, client, indirect client F4or recognised body is a party;

F5in the case of a recognised clearing house which is not a recognised central counterparty, it secures the obligation to pay to the clearing house F6any sum due to the clearing house from a member of the clearing house or from a recognised investment exchange F7or from a recognised CSD or from another recognised clearing house in respect of unsettled market contracts to which the member F8or recognised body is a party under the rules referred to in paragraph 25 of the Schedule to the Recognition Requirements Regulations; and

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