154. Modifications of the Insolvency Regulations 2015
Past version: effective from 20/10/2015 - 19/10/2015
To view other versions open the versions tab on the right
(1) The insolvency provisions outlined in the Insolvency Regulations 2015 have effect in relation to —
(a) Market Contracts;
(b) action taken under the rules of a Recognised Body with respect to Market Contracts;
(c) action taken under the rules of a Recognised Clearing House to transfer Clearing Member Client Contracts, or settle Clearing Member Client Contracts or Clearing Member House Contracts, in accordance with the Default Rules of the Recognised Clearing House;
(d) where Clearing Member Client Contracts transferred in accordance with the Default Rules of a Recognised Clearing House were entered into by the Clearing Member or Client as a principal, action taken to transfer Client Trades, or groups of Client Trades, corresponding to those Clearing Member Client Contracts;
(e) action taken to transfer Qualifying Collateral Arrangements in conjunction with a transfer of Clearing Member Client Contracts as mentioned in paragraph (c) or a transfer of Client Trades as mentioned in paragraph (d);
(f) Qualifying Property Transfers;
(g) a Collateral Security Arrangement;
(h) orders for the delivery of Cash or non-Cash collateral to or from a Recognised Body which have become final and irrevocable under the rules of the Recognised Body; and
(i) the Settlement or delivery of a product or security subject of a Market Contract following expiry or close-out of the Market Contract pursuant to the rules of a Recognised Body;
subject to the provisions of this Part.
(2) So far as those provisions relate to insolvency proceedings in respect of a person other than a Defaulter, they apply in relation to —
(a) proceedings in respect of a Recognised Investment Exchange or a member or Designated Non-Member of a Recognised Investment Exchange;
(b) proceedings in respect of a Recognised Clearing House; and
(c) proceedings in respect of a party to a Market Contract (other than solely a Client Trade) which are begun after a Recognised Body has taken action under its Default Rules in relation to a person party to the contract as principal;
but not in relation to any other insolvency proceedings, notwithstanding that rights or liabilities arising from Market Contracts fall to be dealt with in the proceedings.
(3) The reference in subsection (2)(c) to the beginning of insolvency proceedings is to —
(a) the presentation of a petition for Winding-Up;
(b) the application for an administration order or the passing of a resolution for voluntary Winding-Up; or
(c) the appointment of an Administrative Receiver.
(4) In subsection (3)(b) the reference to an application for an administration order shall be taken to include a reference to —
(a) in a case where an Administrator is appointed in accordance with Chapter 2 of Part 1 of the Insolvency Regulations 2015 following filing with the Court of a copy of a notice of intention to appoint under section 24 of those Regulations, the filing of the copy of the notice; and
(b) in a case where an Administrator is appointed under that Part without a copy of a notice of intention to appoint having been filed with the Court, the appointment of the Administrator.