165. Certain Non-Abu Dhabi Global Market Clearing Houses and Non-Abu Dhabi Global Market Investment Exchanges

(1) This Part applies to transactions cleared through a Non-Abu Dhabi Global Market Clearing House by a Clearing Member or a Client as it applies to transactions cleared through a Recognised Clearing House, but subject to the modifications in subsections (2) and (3).
(2) The Regulator shall not approve a Non-Abu Dhabi Global Market Clearing House unless it is satisfied —
(a) that the rules and practices of the body, together with the law of the country in which the body's head office is situated, provide adequate procedures for dealing with the default of persons party to contracts connected with the body; and
(b) that it is otherwise appropriate to approve the body.
(3) The reference in subsection (2)(a) to default is to a person being unable to meet his obligations.
(4) A Non-Abu Dhabi Global Market Clearing House may apply to the Regulator for an order recognising that the Relevant Provisions of its Default Rules satisfy the Relevant Requirements.
(5) The Application must be made in such manner, and must be accompanied by such information, Documents and reports, as the Regulator may direct.
(6) Information, Documents and reports required under subsection (5) must be provided in English and be given at such times, in such form and at such place, and verified in such manner, as the Regulator may direct.
(7) The Regulator may make an order recognising that the Relevant Provisions of the Default Rules satisfy the Relevant Requirements.
(8) The Regulator may by order revoke an order made under subsection (7) if —
(a) the Non-Abu Dhabi Global Market Clearing House consents;
(b) the Non-Abu Dhabi Global Market Clearing House has failed to pay a fee which is owing to the Regulator in accordance with Rules made under section 7(8);
(c) the Non-Abu Dhabi Global Market Clearing House is failing or has failed to comply with a requirement of or imposed under section 153 (as modified by section 166); or
(d) it appears to the Regulator that the Relevant Provisions no longer satisfy the Relevant Requirements.
(9) An order made under subsection (7) or (8) must state the time and date when it is to have effect.
(10) An order made under subsection (8) may contain such transitional provision as the Regulator considers appropriate.
(11) The Regulator must —
(a) maintain a register of orders made under subsection (7) which are in force; and
(b) publish the register in such manner as it appears to the Regulator to be appropriate.
(12) Section 135 applies to a refusal to make an order under subsection (7) or the making of a revocation order under subsection (8)(b), (c) or (d) as it applies to the making of a Revocation Order under section 134, but with the following modifications —
(a) for "Recognised Body" substitute "Non-Abu Dhabi Global Market Clearing House"; and
(b) in sections 135(6) and (7), for "give a Direction under section 132 or 133" substitute "make an order under section 165(8)".
(13) If the Regulator refuses to make an order under subsection (7) or makes an order under subsection (8)(b), (c) or (d), the Non-Abu Dhabi Global Market Clearing House may refer the matter for review by the Regulatory Committee.
(14) The Regulator may rely on information or advice from a Non-Global Market Competent Authority in its determination of an Application under subsection (4) or the making of a Revocation Order under subsection (8)(d).