151. Market Contracts

(1) In relation to a Recognised Investment Exchange or a Remote Investment Exchange, this Part applies to —
(a) contracts entered into by a member or Designated Non-Member of the Recognised Investment Exchange with a person other than the Recognised Investment Exchange which are either —
(i) contracts made on the Recognised Investment Exchange or on a Recognised Investment Exchange to whose undertaking the Recognised Investment Exchange has succeeded whether by amalgamation, merger or otherwise; or
(ii) contracts in the making of which the member or Designated Non-Member was subject to the rules of the Recognised Investment Exchange or of a Recognised Investment Exchange to whose undertaking the Recognised Investment Exchange has succeeded whether by amalgamation, merger or otherwise;
(b) contracts entered into by the Recognised Investment Exchange or Remote Investment Exchange, in its capacity as such, with a member of the Recognised Investment Exchange or Remote Investment Exchange, or with a Recognised Clearing House, a Remote Clearing House or with another Recognised Investment Exchange or Remote Investment Exchange for the purpose of enabling the rights and liabilities of that member, Recognised Clearing House, Remote Clearing House or other Recognised Investment Exchange or Remote Investment Exchange under a transaction to be settled; and 
(c) contracts entered into by the Recognised Investment Exchange or Remote Investment Exchange with a member of the Recognised Investment Exchange or Remote Investment Exchange, or with a Recognised Clearing House, a Remote Clearing House or with another Recognised Investment Exchange or Remote Investment Exchange for the purpose of providing Clearing Services to that member or Recognised Clearing House, Remote Clearing House, other Recognised Investment Exchange or other Remote Investment Exchange.
(2) In relation to transactions which are cleared through a Recognised Clearing House or Remote Clearing House, this Part applies to —
(a) Clearing Member House Contracts;
(b) Clearing Member Client Contracts;
(c) Client Trades, other than Client Trades excluded by subsections (3) or (4); and
(d) contracts entered into by the Recognised Clearing House or Remote Clearing House with a member of the Recognised Clearing House or Remote Clearing House for the purpose of providing Clearing Services to that member or Recognised Body or Remote Body.
(3) A Client Trade is excluded by this subsection from subsection (2)(c) if —
(a) the Clearing Member which is a party to the Clearing Member Client Contract corresponding to the Client Trade Defaults; and
(b) the Clearing Member Client Contract is not transferred to another Clearing Member within the period specified for this purpose in the Default Rules of the Recognised Clearing House or Remote Clearing House.
(4) A Client Trade is also excluded by this subsection from subsection (2)(c) if —
(a) the Client Trade was entered into by a Client in the course of providing Indirect Clearing Services to an Indirect Client;
(b) the Client Defaults; and
(c) the Clearing Member Client Contract corresponding to the Client Trade is not transferred within —
(i) the period specified for this purpose in the Default Rules of the Recognised Clearing House or Remote Clearing House; or
(ii) if no such period is specified in the Default Rules of the Recognised Clearing House or Remote Clearing House, a period of 14 days beginning with the day on which proceedings in respect of the Client's insolvency are begun.
(5) The parties referred to in the definitions of "Clearing Member Client Contract" and "Client Trade" are —
(a) a Clearing Member;
(b) a Client; and
(c) an Indirect Client.
(6) The reference in subsection (4)(c)(ii) 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.
(7) In subsection (6)(b) the reference to an application for an administration order is to 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.