Article 203 - Application to determine whether default proceedings to be taken
(1) Where there has been made or passed in relation to a member or designated non-member of a designated exchange or a member of a designated clearing house a winding up order, a
Resolution For Voluntary Winding Up or an order appointing a provisional Liquidator and the exchange or clearing house has not taken action under its default rules in consequence of the order, award or resolution or the matters giving rise to it, a relevant officeholder appointed by, or in consequence of or in connection with, the order, award or resolution may apply to the QFC Authority.
(2) The application shall specify the exchange or clearing house concerned and the grounds on which it is made.
(3) On receipt of the application the
QFC Authority shall notify the exchange or clearing house, and unless within three business days after the day on which the notice is received the exchange or clearing house:
(A) takes action under its default rules; or
(B) notifies the
QFC Authority that it proposes to do so forthwith
then, subject as follows, the provisions of Articles 196 to 201 above do not apply in relation to market contracts to which the member or designated non-member in question is a party or to anything done by the exchange or clearing house for the purposes of, or in connection with, the settlement of any such contract.
(4) The provisions of Articles 196 to 201 are not disapplied if before the end of the period mentioned in Article 203(3) the
QFC Authority gives the exchange or clearing house a direction under Article 202(2)(A) (direction to take action under default rules). No such direction may be given after the end of that period.
(5) If the exchange or clearing house notifies the
QFC Authority that it proposes to take action under its default rules forthwith, it shall be under a duty to do so; and that duty is enforceable, on the application of the QFC Authority, by injunction.