160. Disclaimer of property, rescission of contracts, etc.

(1) Section 218 of the Insolvency Regulations 2015 (Power to disclaim onerous property) does not apply in relation to —
(a) a Market Contract;
(b) a Qualifying Collateral Arrangement;
(c) a transfer of a Clearing Member Client Contract, a Client Trade or a Qualifying Collateral Arrangement, as mentioned in paragraphs (c) to (e) of section 154(1);
(d) a Qualifying Property Transfer;
(e) a contract effected by Recognised Body for the purpose of realising property provided as margin in relation to Market Contracts or as Default Fund Contribution;
(f) a Collateral Security Arrangement;
(g) orders for the delivery of Cash or non-Cash collateral to or from a Recognised Body which have become final and irrevocable under the rules of the Recognised Body; and
(h) the Settlement or delivery of a product or security subject of a Market Contract following expiry or close-out of the Market Contract pursuant to the rules of a Recognised Body.
(2) Section 209 (Consequences of a Winding-Up order) of the Insolvency Regulations 2015 does not apply to —
(a) a Market Contract, or any disposition of property in pursuance of such a contract;
(b) the provision of margin in relation to Market Contracts;
(c) the provision of Default Fund Contribution to the Recognised Body;
(d) a Qualifying Collateral Arrangement;
(e) a transfer of a Clearing Member Client Contract, a Client Trade or a Qualifying Collateral Arrangement, as mentioned in paragraphs (c) to (e) of section 154(1);
(f) a Qualifying Property Transfer;
(g) a contract effected by the Recognised Body for the purpose of realising property provided as margin in relation to a Market Contract or as Default Fund Contribution, or any disposition of property in pursuance of such a contract;
(h) any disposition of property in accordance with the rules of the Recognised Body as to the application of property provided as margin or as Default Fund Contribution;
(i) a Collateral Security Arrangement;
(j) orders for the delivery of Cash or non-Cash collateral to or from a Recognised Body which have become final and irrevocable under the rules of the Recognised Body; and
(k) the Settlement or delivery of a product or security subject of a Market Contract following expiry or close-out of the Market Contract pursuant to the rules of a Recognised Body.
(3) However, where —
(a) a Market Contract is entered into by a person who has notice that a petition has been presented for the Winding-Up of the estate of the other party to the contract;
(b) an order under section 154(1)(h) becomes irrevocable with respect to a person who has notice that a petition has been presented for the Winding-Up of the estate of another person affected by such order;
(c) a product or security subject of a Market Contract under section 154(1)(i) becomes deliverable by or to a person who has notice that a petition has been presented for the Winding-Up of the estate of the other party to the dealing or contract; or
(d) margin in relation to a Market Contract or Default Fund Contribution is accepted by a person who has notice that such a petition has been presented in relation to the person by whom or on whose behalf the margin or Default Fund Contribution is provided;
the value of any profit to him arising from the contract or, as the case may be, the amount or value of the collateral to be transferred, deliverable, margin or Default Fund Contribution is recoverable from him by the Relevant Office-Holder unless the Court directs otherwise.
(4) Subsection (3)(a) does not apply where the person entering into the contract is a Recognised Body acting in accordance with its rules, or where the contract or order is effected under the Default Rules of such a Recognised Body, but subsection (3)(d) applies in relation to the provision of —
(a) a margin in relation to any such contract, unless the contract has been transferred in accordance with the Default Rules of the Recognised Clearing House;
(b) a Default Fund Contribution;
(c) a Collateral Security Arrangement;
(d) orders for the delivery of Cash or non-Cash collateral to or from a Recognised Body which have become final and irrevocable under the rules of the Recognised Body; and
(e) the Settlement or delivery of a product or security subject of a Market Contract following expiry or close-out of the Market Contract pursuant to the rules of a Recognised Body.
(5) Any sum recoverable by virtue of subsection (3) ranks for priority, in the event of the insolvency of the person from whom it is due, immediately before preferential debts.