Payment System Settlement Finality Law DIFC Law No. 1 of 2009

PART 1: GENERAL.........................................................................................................................................................2

1. Title ......................................................................................................................................................................2

2. Legislative Authority.............................................................................................................................................2

3. Application of the Law..........................................................................................................................................2

4. Purpose.................................................................................................................................................................2

5. Date of Enactment................................................................................................................................................2

6. Commencement.....................................................................................................................................................2

7 Interpretation ........................................................................................................................................................2

PART 2: DESIGNATION...................................................................................................................................................3

8. Application for designation...................................................................................................................................3

9. Consideration of application ................................................................................................................................3

10. Decision on application......................................................................................................................................3

PART 3: EFFECT OF DESIGNATION ................................................................................................................................4

11. Rules of designated payment system are valid and enforceable ......................................................................4

12. Settlements and provision of collateral security must not be reversed, etc......................................................4

13. Limits on application of Article 11(1)..................................................................................................................5

14. Netting is valid and enforceable.........................................................................................................................6

15. Limits on effect of Articles 10, 11 and 13...........................................................................................................6

PART 4: VARIATION OR REVOCATION OF DESIGNATION....................................................................................................6

16. Variation of designation .....................................................................................................................................6

17. Revocation of designation..................................................................................................................................7

18. Settlement and netting not affected by variation or revocation of designation ................................................7

19. Matters Designating Body may have regard to in recommending variation or revocation of designation.......... 7

20. Procedure for variation or revocation of designation ........................................................................................7

PART 5: SUPPLY OF INFORMATION................................................................................................................................8

21. Supply of information relating to designated payment system .........................................................................8

22. Designated Contact must be notified of insolvency proceedings.......................................................................8

PART 6: MISCELLANEOUS ............................................................................................................................................9

23. Exemption from liability .....................................................................................................................................9

24. Applicable law relating to securities held as collateral security........................................................................9

Schedule 1................................................................................................................................................................11

Interpretation .........................................................................................................................................................11

1. Rules of Interpretation........................................................................................................................................11

2. Legislation in the DIFC........................................................................................................................................11

3. Defined Terms......................................................................................................................................................12