Article 197 - Proceedings of exchange or clearing house take precedence over insolvency procedures

(1) None of the following shall be regarded as to any extent invalid at law on the ground of inconsistency with Regulations relating to the distribution of the assets of a Company upon administration, Arrangement or winding up:
(A) a market contract;
(B) the default rules of a recognised exchange or recognised clearing house; or
(C) the rules of a designated exchange or designated clearing house as to the settlement of market contracts not dealt with under its default rules.
(2) The powers of a relevant insolvency practitioner in his capacity as such, and the powers of the QFC Court under these Regulations shall not be exercised in such a way as to prevent or interfere with:
(A) the settlement in accordance with the rules of a designated exchange or designated clearing house of a market contract not dealt with under its default rules; or
(B) any action taken under the default rules of such an exchange or clearing house.
This does not prevent a relevant officeholder from afterwards seeking to recover any amount under Article 199 or 200 or prevent the QFC Court from afterwards making any such order or decree as is mentioned in Article 201(1) (but subject to Article 201(2) and (3)).
(3) Nothing in the following provisions of this Part shall be construed as affecting the generality of this Article 197.
(4) A debt or other liability arising out of a market contract which is the subject of default proceedings may not be proved in a winding up until the completion of the default proceedings.
(5) A debt or other liability which by virtue of this Article may not be proved or claimed shall not be taken into account for the purposes of any set-off until the completion of the default proceedings.
(6) For the purposes of Article 197(4) & (5) the default proceedings shall be taken to be completed in relation to a person when a report is made under Article 198 stating the sum (if any) certified to be due to or from him.