Settlement of accounts

(1) The Central Bank may require a participant to– (a) open and maintain settlement accounts on the books of the Central Bank or an operator, including the maintenance of minimum balances, on the terms and conditions as the Central Bank or operator may specify; or (b) appoint another participant which has opened a settlement account as a settlement agent, to settle all obligations due from the first- mentioned participant to any other participant arising out of each day’s clearing. (2) In the case where a participant appoints a settlement agent under sub-section (1)(b) the participant shall, before any obligation is settled by the settlement agent on his behalf, give the operator notice in writing of the appointment, accompanied by a written confirmation from the settlement agent of the appointment. (3) A participant who intends to terminate the appointment of a settlement agent, shall notify the operator in writing not less than fifteen days before the date of termination of the appointment. 43