PART VIIADDITIONAL REQUIREMENTS FOR RECOGNITION

Restriction of paragraph 2 of Schedule 21 to Act

17.  In Schedule 21 to the Act (additional requirements for recognition)the following new sub-paragraph shall be added at the end of paragraph2—

(4) The reference in sub-paragraph (1) to rights and liabilities betweenthose party as principal to unsettled market contracts does not includerights and liabilities—

(a)in respect of margin; or

(b)arising out of a failure to perform a market contract..