Regulation 11A Extent to which charge granted in favour of recognised CSD to be treated as market chargeF1
A charge granted in favour of a recognised CSD shall be treated as a market charge only to the extent that—
it is a charge over property provided as margin in respect of market contracts entered into by the recognised CSD or over property provided as a default fund contribution to the recognised CSD; and
it secures the obligation to pay to the recognised CSD any sum due to it from a member of the recognised CSD or from a recognised clearing house or from a recognised investment exchange or from another recognised CSD in respect of unsettled market contracts to which the member or recognised body is a party.
A charge granted in favour of F2a third country CSD shall be treated as a market charge only to the extent that—
it is a charge over property provided as margin in respect of market contracts entered into by the F3... third country CSD or over property provided as a default fund contribution to the EEA CSD or third country CSD; and
it secures the obligation to reimburse the cost (other than fees or other incidental expenses) incurred by the F4... third country CSD in settling unsettled market contracts in respect of which the charged property is provided as margin.
Annotations
Textual amendments
- F1
Reg. 11A inserted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), reg. 1, Sch. para. 20(6) (with regs. 7(4), 9(1))
- F2
Word in reg. 11A(2) substituted (31.12.2020) by The Financial Markets and Insolvency (Amendment and Transitional Provision) (EU Exit) Regulations 2019 (S.I. 2019/341), regs. 1(3), 11(3)(a) (with reg. 21) (as amended by S.I. 2020/1301, regs. 1, 3, Sch. para. 23(b) and with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)
- F3
Words in reg. 11A(2)(a) omitted (31.12.2020) by virtue of The Financial Markets and Insolvency (Amendment and Transitional Provision) (EU Exit) Regulations 2019 (S.I. 2019/341), regs. 1(3), 11(3)(b) (with reg. 21) (as amended by S.I. 2020/1301, regs. 1, 3, Sch. para. 23(b) and with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)
- F4
Words in reg. 11A(2)(b) omitted (31.12.2020) by virtue of The Financial Markets and Insolvency (Amendment and Transitional Provision) (EU Exit) Regulations 2019 (S.I. 2019/341), regs. 1(3), 11(3)(b) (with reg. 21) (as amended by S.I. 2020/1301, regs. 1, 3, Sch. para. 23(b) and with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)