4(1)None of the following shall be regarded as to any extent invalid at law on the ground of inconsistency with the law relating to the distribution of the assets of a person on bankruptcy, winding up or sequestration, or in the administration of an insolvent estate—
(a)a market contract,
(b)the rules of a recognised investment exchange or recognised clearing house as to the settlement of market contracts,
(c)the default rules of a recognised investment exchange or recognised clearing house.
(2)The powers of a relevant office-holder in his capacity as such, and the powers of the court under the [1986 c. 45.] Insolvency Act 1986 or the [1985 c. 66.] Bankruptcy (Scotland) Act 1985, shall not be exercised in such a way as to prevent or interfere with—
(a)the settlement of a market contract in accordance with the rules of a recognised investment exchange or recognised clearing house,
(b)any action taken under the default rules of such an exchange or clearing house.
(3)Nothing in the following provisions of this Schedule shall be construed as affecting the generality of sub-paragraph (2).
(4)A debt or other liability arising out of a market contract which is the subject of default proceedings may not be proved in a winding up or bankruptcy, or in Scotland claimed in a winding up or sequestration, until the completion of the default proceedings.
A debt or other liability which by virtue of this sub-paragraph may not be proved or claimed shall not be taken into account for the purposes of any set-off until the completion of the default proceedings.