Default rules in respect of market contractsU.K.
10.—(1) The exchange must have default rules which, in the event of a member of the exchange being or appearing to be unable to meet his obligations in respect of one or more market contracts, enable action to be taken in respect of unsettled market contracts to which he is a party.U.K.
(2) The rules may authorise the taking of the same or similar action in relation to a member who appears to be likely to become unable to meet his obligations in respect of one or more market contracts.
(3) The rules must enable action to be taken in respect of all unsettled market contracts, other than those entered into F1... for the purposes of or in connection with the provision of clearing services for the exchange.
Textual Amendments
F1Words in Sch. para. 10(3) omitted (1.11.2007) by virtue of The Financial Services and Markets Act 2000 (Recognition Requirements for Investment Exchanges and Clearing Houses) (Amendment) Regulations 2006 (S.I. 2006/3386), regs. 1, 12
Commencement Information
I1Sch. para. 10 in force at 1.12.2001, see reg. 2