PART IIGeneral (continued)
Securities and Derivatives Clearing Houses
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(7.1), (7.104), (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
(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
- securities and derivatives clearing house
securities and derivatives clearing house means, in addition to an entity designated under subsection (2),
(c) the WCE Clearing Corporation, incorporated under The Corporations Act, chapter C225 of the Re-enacted Statutes of Manitoba 1987. (chambre spécialisée)
- 2002, c. 14, s. 1
- 2007, c. 6, s. 442, c. 29, s. 112
- 2012, c. 31, s. 171
- 2016, c. 7, s. 167
- 2017, c. 33, s. 184
Marginal note:Clearing house or participant
13.2 The Bank may enter into an agreement with a clearing house or a participant, or both, in respect of
(a) netting arrangements;
(b) risk-sharing and risk-control mechanisms;
(c) certainty of settlement and finality of payment;
(d) the nature of financial arrangements among participants;
(e) the operational systems and financial soundness of the clearing house;
(e.1) the exercise of the Bank’s powers and the performance of its duties and functions; and
(f) any other matters pertaining to systemic risk or payments system risk.
- 2014, c. 39, s. 369
- 2017, c. 33, s. 192
13.3 The Bank may enter into an agreement or arrangement with any government authority or regulatory body for the purpose of consulting, sharing information and coordinating their actions with respect to clearing and settlement systems.
- 2014, c. 39, s. 369
Marginal note:Information requests re systems or arrangements
14 (1) Where the Governor of the Bank has reasonable grounds to believe that a system or arrangement exists for the clearing and settlement of payment obligations or payment messages but the Bank requires further information in order to determine whether the system or arrangement is a clearing and settlement system, the Governor may, with the agreement of the Minister, request a person who is a party to the system or arrangement to provide the Bank with such information and documents regarding the system or arrangement as the Bank may require to make the determination.
Marginal note:Compliance with request required
(2) Every person to whom a request is directed under subsection (1) shall comply with the request.
Marginal note:Risk information
(3) Every clearing house shall provide the Bank with any information and documents that the Bank may require to enable the Bank to determine whether the clearing and settlement system poses a systemic risk or payments system risk, including
(a) the names of its participants;
(b) copies of its constating documents, by-laws, resolutions, agreements, rules, procedures and other documents governing its establishment and operation;
(c) the names of its directors, committee members and auditors;
(d) copies of its reports, statements or other documents that are required to be filed with any government authority or regulatory body; and
(e) copies of its financial statements.
- 1996, c. 6, s. 162 (Sch., s. 14)
- 2014, c. 39, s. 370
Marginal note:Compliance orders
(a) directing a clearing house or participant to comply with this Act, a directive issued under this Act or an agreement that it has entered into under section 13.2, if the clearing house or participant has failed to comply with this Act, the directive or the agreement, as the case may be;
(b) directing a person to comply with a request made under subsection 14(1), if the person has failed to comply with the request; or
(c) directing a person to comply with a prohibition or to respect a condition imposed under this Act, if the person has failed to comply with the prohibition or to respect the condition.
Marginal note:Powers of the court
(2) The court may make any order referred to in subsection (1) and may also make any further order that it considers appropriate.
- 1996, c. 6, s. 162 (Sch., s. 15)
- 2012, c. 5, s. 214
- 2014, c. 39, s. 371
Marginal note:Offence and punishment
16 Every person who, without reasonable cause, contravenes any provision of this Act is guilty of an offence and
- Date modified: