Paragraph 32 Cash call powerI1

United Kingdom

I2(1)

The fifth stabilisation option is to make one or more cash call instruments.

(2)

A cash call instrument is an instrument that makes provision requiring one or more clearing members of the CCP to pay an amount in cash specified in the instrument to the CCP.

I3(3)

The Treasury may by regulations—

(a)

make provision for calculating the maximum cash amount that may be specified for the purposes of sub-paragraph (2);

(b)

specify circumstances in which the Bank may require a CCP to use specified funds of specified clearing members to satisfy all or part of that member’s obligations under sub-paragraph (2).

(4)

The power under sub-paragraph (1) does not apply to a clearing member—

(a)

which is an interoperable CCP,

(b)

which falls within Article 1(4) or (5) of EMIR, or

(c)

in relation to which a direction under regulation 3(1)(f) of the Equivalence Determinations for Financial Services and Miscellaneous Provisions (Amendment etc) (EU Exit) Regulations 2019 (S.I. 2019/541) is in force.

(5)

Regulations under this paragraph are subject to the negative procedure.

Annotations

Commencement

I1: Sch. 11 para. 32 not in force at Royal Assent, see s. 86(3)
I2: Sch. 11 para. 32(1)(2) in force at 31.12.2023 by S.I. 2023/1382, reg. 8(b)
I3: Sch. 11 para. 32(3)-(5) in force at 29.8.2023 by S.I. 2023/779, reg. 4(ddd)(vii)