When is a BSC Party in Default of the BSC?
There are various circumstances in which a BSC Party can be in Default of the BSC. These include non-payment of charges, being in Credit Default for more than a specified number of times or period of time, or a material and/or persistent breach of the BSC.
The BSC Panel decides what action to take in respect of a Defaulting Party. The options open to the Panel include publicly naming the Party, suspending some of the Party’s rights under the BSC (including the submission of some or all trades) and, in extreme cases, expelling the Party from the BSC.
The full rules are set out in Section H of the BSC.