Payment and Settlement Systems (Finality and Netting) Act · 2022 Revised Edition · Part · General
15. Preservation of rights etc.
Official textFrom Attorney General's Chambers, unchanged
Except to the extent that it expressly provides, this Act shall not operate to limit, restrict or otherwise affect —
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
any investigation, legal proceeding or remedy in respect of any such right, title, interest, privilege, obligation or liability.
Nothing in subsection (1) shall be construed to require —
the unwinding of any netting done by the operator of a designated system, whether pursuant to its default arrangements or otherwise;
the revocation of any transfer order given by a participant which is entered into a designated system; or
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 put in place by a designated system to limit systemic and other types of risk which arise in the event of a participant appearing to be unable, or likely to become unable, to meet its obligations in respect of a transfer order, including any arrangements for — (a) netting; or (b) the closing out of open positions;
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;
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;
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;
participant
Defined · s 2“participant” means a party to an arrangement that establishes a system;
transfer order
Defined · s 2“transfer order” means — (a) an instruction by a participant 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 an instruction which, 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 either to settle an obligation for the transfer of book-entry securities, or for the transfer of such securities.