152. Qualifying Collateral Arrangements and Qualifying Property Transfers

(1) In relation to transactions which are cleared through a Recognised Clearing House, this Part applies to —
(a) any contracts or contractual obligations for, or arising out of, the provision of Property as margin where —
(i) the margin is provided to a Recognised Clearing House and is recorded in the accounts of the Recognised Clearing House as an asset held for the account of a Client, an Indirect Client, or a group of Clients or Indirect Clients; or
(ii) the margin is provided to a Client or Clearing Member for the purpose of providing cover for exposures arising out of present or future Client Trades;
(b) transfers of Property;
(c) payments of money by a Clearing Member to Indirect Clients;
(d) transfers of Property to the extent that they —
(i) are made by a Recognised Clearing House to a Non-Defaulting Clearing Member instead of, or in place of, a Defaulting Clearing Member;
(ii) represent the termination or close-out value of a Clearing Member Client Contract which is transferred from a Defaulting Clearing Member to a Non-Defaulting Clearing Member; and
(iii) are determined in accordance with the Default Rules of the Recognised Clearing House; and
(e) transfers of Property to the extent that such transfer —
(i) is made by a Clearing Member to a Non-Defaulting Client or another Clearing Member instead of, or in place of, a Defaulting Client;
(ii) represents the termination or close-out value of a Client Trade which is transferred from a Defaulting Client to another Clearing Member or a Non-Defaulting Client; and
(iii) is of an amount that does not exceed the termination or close-out value of the Clearing Member Client Contract corresponding to that Client Trade, as determined in accordance with the Default Rules of the Recognised Clearing House.
(2) For the purposes of subsection (1), Property —
(a) has the meaning given to that term in section 215(2) of the Insolvency Regulations 2015; and
(b) the reference to a contract or contractual obligation for, or arising out of, the provision of Property as margin in circumstances falling within that subsection includes a reference to a contract or contractual obligation of that kind which has been amended to reflect the transfer of a Clearing Member Client Contract or Client Trade