In forceAmended2020 Revised Edition

Contents

Payment and Settlement Systems (Finality and Netting) Act 2002 · 2020 Revised Edition · Part 4 · Miscellaneous

15. Preservation of rights, etc.

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Amended

Last amended by an amending law of 2018.

(1)

Except to the extent that it expressly provides, this Act does not operate to limit, restrict or otherwise affect —

(a)

any right, title, interest, privilege, obligation or liability of a person resulting from the underlying transaction in respect of a transfer order which has been entered into a designated system; or

(b)

any investigation, legal proceeding or remedy in respect of any such right, title, interest, privilege, obligation or liability.

(2)

Nothing in subsection (1) is to be construed to require —

(a)

the unwinding of any netting done by the operator of a designated system, whether pursuant to its default arrangements or otherwise;

(b)

the revocation of any transfer order given by a participant which is entered into a designated system; or

(c)

the reversal of a payment or settlement made under the Rules of a designated system.

Terms defined in s 2

default arrangements
Defined · s 2
“default arrangements” means the arrangements made by the operator of a designated system to limit systemic and other types of risks that arise when a participant is or is likely to become unable to meet its obligations in respect of a transfer order, examples of which include any of the following arrangements:(a)any arrangements for netting;(b)any arrangements for the closing out of open positions;(c)any arrangements relating to collateral security;
Open s 2
designated system
Defined · s 2
“designated system” means a system that is designated by the Authority under section 3 to be a designated system for the purposes of this Act;
Open s 2
netting
Defined · s 2
“netting” means the conversion into one net claim or one net obligation of claims and obligations resulting from transfer orders which a participant either issues to, or receives from, one or more other participants with the result that only a net claim can be demanded or a net obligation be owed;
Open s 2
operator
Defined · s 2
“operator”, in relation to a designated system, means the person specified in the order referred to in section 3(1) as the operator of the designated system;
Open s 2
participant
Defined · s 2
“participant” means a party to an arrangement that establishes a system;
Open s 2
Rules
Defined · s 2
“Rules”, in relation to a designated system, means any rules, regulations, by‑laws or other similar body of written statements, by whatever name called, and whether or not contained in the constituent documents of the designated system, that govern the activities and conduct of —(a)the designated system; and(b)any other persons in relation to the designated system;
Open s 2
transfer order
Defined · s 2
“transfer order” means —(a)an instruction by a participant, which may be carried out in or through one or more designated systems —(i)to place at the disposal of a recipient an amount of money by means of a book‑entry on the accounts of a settlement institution for a designated system; or(ii)that, when settled, results in the assumption or discharge of a payment obligation as defined by the Rules of a designated system; or(b)an instruction by a participant to transfer book‑entry securities.
Open s 2

Report

Read on from s 15A