A specialized department within the market operator monitors positions and margin calls, and handles the automatic settlement of securities positions. It also oversees the transfer of securities between partners through account-to-account transfers and ensures the safekeeping of these securities. Its staff is bound by professional secrecy.
The functions of central securities depository and settlement bank may be entrusted to specialized operators after consultation with the Markets Commission.
The market operator's partners fulfil all obligations arising from the rules relating to settlement and delivery, and to transactions recorded on their behalf in the name of third parties.
Payment of sums due in this respect may not be deferred.
Any clause to the contrary is deemed null and void.
Market originators and market operator partners provide collateral to cover positions taken on the market. This collateral takes the form of dedicated deposits.
Upon the automatic liquidation of positions, ownership of these deposits is transferred to the market partners for the purpose of settling any outstanding debit balances.
The following may not claim any rights to these deposits:
• Creditors of any of the settlement partners;
• Creditors of an ordering party;
• Representatives of an ordering party or a market operator partner;
• Court-appointed administrators.
In the event of insolvency proceedings against an investment services provider or any other case of default by an investment services provider, the margin and margin deposits held with that provider and relating to positions taken on the market by non-defaulting ordering parties may be transferred to another investment services provider.