Paragraph 97 Suspension of obligationsI1I2
United Kingdom
Where the Bank is exercising a stabilisation power in respect of a CCP (a “CCP under resolution”) the Bank may suspend obligations to make a payment, or delivery, under a contract where one of the parties to the contract is the CCP under resolution.
A suspension imposed under sub-paragraph (1)—
begins when the instrument providing for the suspension is first published,
must end no later than midnight at the end of the first business day following the day on which the instrument providing for the suspension is published, and
subject to sub-paragraph (2), suspends all obligations to make a payment or delivery under the contract in question, whether the obligation concerned is that of the CCP under resolution or of any other party to the contract.
Where a payment or delivery under the contract concerned first fell due within the period of the suspension, that payment or delivery is treated as being due immediately on the expiry of the suspension.
The power under sub-paragraph (1) must be exercised by way of provision in a share transfer instrument, property transfer instrument, resolution instrument or third-country instrument.
The Bank must have regard to the impact a suspension might have on the orderly functioning of the financial markets before exercising the power in sub-paragraph (1).
In this paragraph, “eligible claim” means a claim in respect of which compensation is payable under the Financial Services Compensation Scheme.
Annotations
Commencement
- I1
Sch. 11 para. 97 not in force at Royal Assent, see s. 86(3)
- I2
Sch. 11 para. 97 in force at 31.12.2023 by S.I. 2023/1382, reg. 8(b)