(1) The Financial Markets and Insolvency Regulations 1991 [S.I. 1991/880; regulation 7 was amended by S.I. 1999/1209 and S.I. 2009/853.] are amended as follows.

(2) In regulation 7 insert at the appropriate place in each case -

""clearing member" has the same meaning as in section 190(1) of the Act;

"client" has the same meaning as in section 190(1) of the Act;

"indirect client" has the same meaning as in section 190(1) of the Act;

"recognised central counterparty" has the same meaning as in section 190(1) of the Act;".

(3) In regulation 11 [S.I. 1991/880; regulation 11 was amended by S.I. 2009/853.] -

(a) after paragraph (a) insert -

"(aa) in the case of a recognised central counterparty, it secures the obligation to pay to the recognised central counterparty any sum due to it from a clearing member, a client, an indirect client, a recognised investment exchange or recognised clearing house in respect of unsettled market contracts to which the clearing member, client, indirect client, investment exchange or clearing house is a party;"; and

(b) in paragraph (b) for "in the case of a recognised UK clearing house" substitute "in the case of a recognised clearing house which is not a recognised central counterparty".