2. A SIPS operator shall have default rules and procedures that enable it to continue to meet its obligations in the event of a participant default, which address the replenishment of resources following a default. The rules and procedures shall define, as a minimum, all of the following:
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(a)
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the actions that a SIPS operator can take when a default occurs;
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(b)
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whether taking such actions is automatic or discretionary and the means by which that discretion is exercised;
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(c)
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potential changes to a SIPS operator’s normal settlement practices to ensure timely settlement;
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(d)
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the management of payments at different stages of processing;
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(e)
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the probable sequencing of actions;
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(f)
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the roles, obligations and responsibilities of the relevant parties, including non-defaulting participants;
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(g)
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other mechanisms to be activated to limit the impact of a default.
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