• MIR 4.3 MIR 4.3 Clearing and settlement

    • MIR 4.3.1

      A Recognised Clearing House must ensure that its Clearing Services include satisfactory arrangements for securing the timely discharge (whether by performance, compromise or otherwise), Clearing and settlement of the rights and liabilities of the parties to transactions for which it provides such services.

    • MIR 4.3.2

      A Recognised Clearing House operating a settlement facility must ensure that its settlement services include satisfactory arrangements for securing the timely discharge of settlement obligations of the parties to transactions for which it provides such services.

    • MIR 4.3.3

      A Recognised Clearing House must be able to demonstrate compliance with internationally accepted standards for financial market infrastructures to the satisfaction of the Regulator.

    • MIR 4.3.4

      A Recognised Clearing House must ensure that its Clearing Services involve satisfactory arrangements for securing the timely discharge (whether by performance, compromise or otherwise) of the rights and liabilities of the parties to transactions in respect of which it provides such services (being rights and liabilities in relation to those transactions).

    • MIR 4.3.5

      In determining whether there are satisfactory arrangements for securing the timely discharge of the rights and liabilities of the parties to transactions, the Regulator may have regard to the Recognised Clearing House's:

      (a) rules and practices relating to Clearing and settlement including its arrangements with another Person for the provision of Clearing and settlement services;
      (b) arrangements for matching trades and ensuring that the parties are in agreement about trade details;
      (c) where relevant, arrangements for making deliveries and payments, in all relevant jurisdictions;
      (d) procedures to detect and deal with the failure of a Member to settle in accordance with its rules;
      (e) arrangements for taking action to settle a trade if a Member does not settle in accordance with its rules;
      (f) arrangements for monitoring its Members' settlement performance; and
      (g) (where appropriate) Default Rules and default procedures.

    • MIR 4.3.6

      A Recognised Clearing House will not be regarded as failing to comply with the Recognition Requirement merely because it is unable to arrange for a specific transaction to be settled.