International Financial Services Centres Authority (Market Infrastructure Institutions) Regulations, 2021 Chapter IV GENERAL OBLIGATIONS OF A RECOGNISED STOCK EXCHANGE AND A RECOGNISED CLEARING CORPORATION
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Settlement finality makes determined exchange and clearing obligations irrevocable, while collateral appropriation takes priority over competing participant claims. Payment and settlement through recognised stock exchanges and recognised clearing corporations must follow approved netting or gross procedures under ... Summary
Settlement finality makes determined exchange and clearing obligations irrevocable, while collateral appropriation takes priority over competing participant claims.
Payment and settlement through recognised stock exchanges and recognised clearing corporations must follow approved netting or gross procedures under their bye-laws. Such settlements are final, irrevocable and binding on the parties. Once settlement finality arises, the exchange or clearing corporation has priority to appropriate collateral, deposits or margins contributed by a broker dealer, clearing member or client towards settlement or other obligations, ahead of competing liabilities or claims. Finality arises when the payable obligations are determined, whether or not actual payment or delivery has occurred.
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