4.4 Declaration of Default

4.4.1           Subject to Rule 4 below, upon the occurrence of an event of default in relation to a Member or at any time thereafter, if the Exchange, in its absolute discretion, considers that action should be taken under the default rules with respect to such Member the Exchange shall declare such Member to be a defaulter.


4.4.2           The Exchange may take such action or step as may be directed by the MAS under the default rules. If the Exchange is directed to take one or more of the steps referred to in Rule 4 in relation to a Member, the Exchange shall declare the Member to be a defaulter.


4.4.3           The Exchange may consult with the Clearing House, professional advisers, relevant authorities or any third party before or at any time after taking action under these default rules.


4.4.4           A Member who is declared a defaulter shall not enter into any Contract with a Clearing Member of the Relevant Clearing House (including, for the avoidance of doubt, a closing-out Contract), and a Member shall not enter into any such Contract with a defaulter, after the time that it is declared a defaulter, (notwithstanding any order or instruction to do so given by a person other than the Default Committee) save in accordance with any directions given by the Default Committee under these default rules. The Default Committee may, at its discretion, direct that a Contract entered into by a defaulter after such time shall be deemed to have been entered into pursuant to directions given by the Default Committee under these default rules.


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