Article 204 - Market charges

(1) In this Part "market charge" means a charge, granted:
(A) in favour of a designated exchange, for the purpose of securing debts or liabilities arising in connection with the settlement of market contracts;
(B) in favour of a designated clearing house, for the purpose of securing debts or liabilities arising in connection with their ensuring the performance of market contracts;
(C) in favour of a person who agrees to make payments as a result of the transfer or allotment of securities made through the medium of a computer-based system established for the purpose of securing debts or liabilities of the transferee or allottee arising in connection therewith; or
(D) a security financial collateral arrangement as defined in Article 195(2)(I).
(2) Where a charge is granted partly for purposes specified in Article 204(1)(A), (B) or (C) and partly for other purposes, it is a "market charge" so far as it has effect for the specified purposes.
(3) In Article 204(1)(C):
(A) "securities" includes any right to such securities; and
(B) "transfer", in relation to any such securities or right, means a transfer of the beneficial interest.
(4) The QFC Authority may by rules make further provision as to the charges granted in favour of any such person as is mentioned in Article 204(1)(A), (B) or (C) which are to be treated as "market charges" for the purposes of this Part; and such rules may add to, amend or repeal the provisions of Article 204(1) to (3) above.
(5) Rules made by the QFC Authority may provide that a charge shall or shall not be treated as a market charge if or to the extent that it secures obligations of a specified description, is a charge over property of a specified description or contains provisions of a specified description.