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  • CSD-2.9 CSD-2.9 Proceedings of Licensed Clearing House and Licensed Central Depository Take Precedence Over Law of Insolvency

    • CSD-2.9.1

      In line with Articles 108 and 109 of the CBB Law and Resolution No (44) of 2014 with respect to promulgating a Regulation for Close-out Netting under a Market Contract, none of the following shall be regarded as to any extent invalid under the law on the grounds of inconsistency with the law relating to distribution of the assets of a person on insolvency, bankruptcy or winding up, or on the appointment of a receiver over any of the assets of a person:

      (a) A market contract;
      (b) The rules of a licensed clearing house relating to the settlement of a market contract;
      (c) Any proceeding or other action taken under the rules of a licensed clearing house relating to the settlement of a market contract;
      (d) A market charge;
      (e) The default rules of a licensed clearing house or central depository; and
      (f) Any default proceedings.
      Amended: April 2016

    • CSD-2.9.2

      The powers of a relevant office-holder in his capacity as such, and the powers of a court acting under the law of insolvency, shall not be exercised in such a way so as to prevent or interfere with:

      (a) The settlement in accordance with the rules of a licensed clearing house or licensed central depository of a market contract; or
      (b) Any default proceedings taken in pursuant to default rules.
      Amended: April 2016