PART 3
CLEARING AGENCIES AND SECURITIES REGISTRIES
22. Interpretation
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(1) In this Part—
“default proceedings” means any proceedings or other action taken by a clearing agency under its default rules;
“default rules”, for a clearing agency, means the rules of the clearing agency required by section 26;
“defaulter” means a participant who is the subject of any default proceedings;
“market charge” means a charge, whether fixed or floating, granted in favour of a clearing agency—
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(a) over property, specified in subsection (2), held by or deposited with the clearing agency; and
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(b) to secure liabilities arising directly with the clearing agency facilitating the settlement of a market contract;
“market collateral” means property, specified in subsection (2), held by or deposited with a clearing agency to secure liabilities arising directly with the clearing agency facilitating the settlement of a market contract;
“market contract” means a contract subject to the rules of a clearing agency entered into by the clearing agency with a participant under a novation which is both in accordance with those rules and for the purpose of the clearing and settlement of transactions in securities effected on, or subject to the rules of a securities exchange;
“participant” means a person who, under the rules of a clearing agency, may participate in one or more of the services provided by the clearing agency in its capacity as a clearing agency;
“relevant office-holder” means—
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(a) the receiver appointed under the Title IX of the Commercial Code;
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(b) a person acting in relation to a company as its liquidator, provisional liquidator, receiver or manager;
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(c) a person acting in relation to an individual as his or her trustee in bankruptcy or interim receiver of his or her property; or
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(d) a person appointed under an order for the administration in bankruptcy of an insolvent estate of a deceased person;
“settlement”, in relation to a market contract, includes partial settlement.
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(2) Property which may be subject to a market charge, or provided as market collateral, is—
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(a) money, letters of credit, bankers' drafts, certified cheques, and any similar instruments;
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(b) securities;
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(c) futures contracts, and any similar financial contracts.
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(3) Where a charge is granted partly for the purpose specified in the definition of “market charge” and partly for other purposes, the charge shall be a market charge in so far as it has effect for that specified purpose.
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(4) Where collateral is granted partly for the purpose specified in the definition of “market collateral” and partly for other purposes, the collateral is market collateral in so far as it has been provided for that specified purpose.
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(5) References in this Part to the law on insolvency include references to every provision made by or under—
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(a) Title IX of the Commercial Code;
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(b) the Companies Act; and
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(c) any other enactment which is concerned with or in any way related to the insolvency of a person.
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(6) References in this Part to settlement in relation to a market contract are references to the discharge of the rights and liabilities of the parties to the contract, whether by performance, compromise or otherwise.