# The Financial Markets and Insolvency Regulations 1991, Regulation 11A: Extent to which charge granted in favour of recognised CSD to be treated as market charge


(1) A charge granted in favour of a recognised CSD shall be treated as a market charge only to the extent that—
(a) 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
(b) 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.
(2) A charge granted in favour of a third country CSD shall be treated as a market charge only to the extent that—
(a) it is a charge over property provided as margin in respect of market contracts entered into by the ... third country CSD or over property provided as a default fund contribution to the EEA CSD or third country CSD; and
(b) it secures the obligation to reimburse the cost (other than fees or other incidental expenses) incurred by the ... third country CSD in settling unsettled market contracts in respect of which the charged property is provided as margin.

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Source: https://www.legislation.gov.uk/uksi/1991/880/regulation/11A (the official version)
Page: https://openlegislation.uk/financial-markets-and-insolvency-regulations-1991/regulation-11A
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.