Payment Clearing and Settlement Act

Marginal note:Securities and derivatives clearing houses

• 13.1 (1) Nothing in any law relating to bankruptcy or insolvency or in any order of a court made in respect of the administration of a reorganization, arrangement or receivership involving insolvency, including in any foreign law or order of a foreign court, has the effect of

  • (a) preventing a securities and derivatives clearing house from

    • (i) if it is a party to a netting agreement, terminating the agreement and determining a net termination value or net settlement amount in accordance with the provisions of the agreement, with the party entitled to the value or amount becoming a creditor of the party owing the value or amount for that value or amount, or

    • (ii) acting in accordance with any of its rules that provide the basis on which payment and delivery obligations are calculated, netted and settled; or

  • (b) interfering with the rights or remedies of a securities and derivatives clearing house in respect of any collateral that has been granted to it as security for the performance of an obligation incurred in respect of the clearing and settlement services provided by the securities and derivatives clearing house.

• Marginal note:Sections 39.15 and 39.152 of Canada Deposit Insurance Corporation Act

  (1.1) Despite subsection (1), no action may be taken in respect of an eligible financial contract, as defined in subsection 39.15(9) of the Canada Deposit Insurance Corporation Act, if it is prevented by subsection 39.15(7.01), (7.1), (7.11), (7.12) or (7.2) or section 39.152 of that Act.

• Marginal note:Designation by Minister

  (2) For the purpose of this section, the Minister may designate an entity, other than one mentioned in paragraph (a), (b) or (c) of the definition securities and derivatives clearing house in subsection (3), as a securities and derivatives clearing house if

  • (a) the Minister is of the opinion that it is in the public interest to do so; and

  • (b) the entity provides clearing and settlement services to its clearing members in respect of transactions that involve securities or derivatives.

• Marginal note:Definitions

  (3) The definitions in this subsection apply in this section.

  clearing member

  clearing member means a person who uses the services of a securities and derivatives clearing house. (membre)

  net termination value

  net termination value means the net amount obtained after setting off or compensating or otherwise netting the obligations between a securities and derivatives clearing house and a clearing member in accordance with the netting agreement. (reliquat net)

  netting agreement

  netting agreement means an agreement between a securities and derivatives clearing house and a clearing member that is

  • (a) an eligible financial contract; or

  • (b) an agreement that provides for the netting or setting off or compensation of present or future obligations to make payments or deliveries against present or future rights to receive payments or take deliveries. (accord de compensation)

  securities and derivatives clearing house

  securities and derivatives clearing house means, in addition to an entity designated under subsection (2),

  • (a) the Canadian Derivatives Clearing Corporation, incorporated under the Canada Business Corporations Act;

  • (b) the CDS Clearing and Depository Services Inc., a corporation incorporated under the Canada Business Corporations Act; or

  • (c) the WCE Clearing Corporation, incorporated under The Corporations Act, chapter C225 of the Re-enacted Statutes of Manitoba 1987. (chambre spécialisée)