Rule 4 – Default
Summary of this Rule 4:
Rule 4 deals with situations in which a Member is in default. The Exchange has a duty to investigate any information which indicates a Member is in default, and may after reviewing relevant evidence declare a Member to be a defaulter. In such cases, the Exchange has the right to instantly suspend all trading access to the Exchange and to inform those counterparties, be the banks, Clearing Members, Relevant Clearing Houses or others of its actions and the reasons for them. This Rule also stipulates the duties of a defaulting Member in co-operating with the Exchange to resolve all and any outstanding obligations or issues.