The Financial Services and Markets Act 2000 (Recognition Requirements for Investment Exchanges and Clearing Houses) Regulations 2001

Interpretation U.K.

3.—(1) In these Regulations—

“the Act” means the Financial Services and Markets Act 2000;

[F1 “branch” in relation to an investment firm has the meaning given in Article 4.1.26 of the markets in financial instruments directive and in relation to a credit institution has the meaning given in Article 4.3 of the banking consolidation directive;]

[F1 “central counterparty”, “clearing” and “settlement” have the same meaning as in the markets in financial instruments directive;]

[F1 “the Commission Regulation” means Commission Regulation 1287/2006 of 10 August 2006;]

“the Companies Act” means the Companies Act 1989(1);

[F1 “competent authority”, in relation to an investment firm or credit institution, means the competent authority in relation to that firm or institution for the purposes of the markets in financial instruments directive;]

[F1 “credit institution” means—

(a)

a credit institution authorised under the banking consolidation directive, or

(b)

an institution which would satisfy the requirements for authorisation as a credit institution under that directive if it had its registered office (or if it does not have a registered office, its head office) in an EEA State;]

[F2 “default fund” means the sum of the default fund contributions by the members or designated non-members of a recognised investment exchange to that exchange or by one recognised investment exchange to another or by the members of a recognised clearing house to that clearing house or by one recognised clearing house to another to the extent those contributions have not been returned or otherwise applied;

“default fund contribution” has the same meaning as in section 188(3A) of the Companies Act;]

“defaulter” and “default” are to be construed in accordance with section 188(2) of the Companies Act, and references to action taken under the default rules of an exchange or clearing house are to be construed in accordance with section 188(4) of that Act;

[F1 “disorderly trading conditions” has the same meaning as in the markets in financial instruments directive;]

“exempt activities”, in relation to a recognised body, means the regulated activities in respect of which the body is exempt from the general prohibition as a result of section 285(2) or (3) of the Act;

“facilities”, in relation to a recognised body, means the facilities and services it provides in the course of carrying on exempt activities, and references to the use of the facilities of an exchange is to be construed in accordance with paragraph (2);

“financial crime” is to be construed in accordance with section 6(3) and (4) of the Act;

[F1 “financial instrument” has the meaning given in Article 4.1.17 of the markets in financial instruments directive;]

“the Financial Services Act” means the Financial Services Act 1986(2);

“investments” means investments of a kind specified for the purposes of section 22 of the Act;

“market contract” has the meaning given in section 286(4) of the Act (with reference, in the case of a recognised investment exchange, to section 155(2) of the Companies Act or article 80(2) of the Northern Ireland Order, or in the case of a recognised clearing house, to section 155(3) of the Companies Act or article 80(3) of the Northern Ireland Order) and references to a party to a market contract are to be construed in accordance with section 187 of the Companies Act;

[F1 “multilateral trading facility” has the meaning given in Article 4.1.15 of the markets in financial instruments directive;]

“the Northern Ireland Order” means the Companies (No. 2) (Northern Ireland) Order 1990(3); and

[F1 “regulated market” has the meaning given in Article 4.1.14 of the markets in financial instruments directive;]

“regulatory functions”, in relation to a recognised body, has the meaning given in section 291(3) of the Act.

[F1 “transferable securities” has the meaning given in Article 4.1.18 of the markets in financial instruments directive;]

[F1 “UK firm” means an investment firm or credit institution which has a Part IV permission to carry on one or more regulated activities.]

(2) In these Regulations, references to dealings on an exchange, or transactions effected on an exchange, are references to dealings or transactions which are effected by means of the exchange’s facilities or which are governed by the rules of the exchange, and references to the use of the facilities of an exchange include use which consists of any such dealings or entering into any such transactions.

(3) In these Regulations, except in regulation 6, references to the performance of the functions of a recognised body are references to the carrying on by it of exempt activities together with the performance of its regulatory functions.

Textual Amendments

F1 Words in reg. 3(1) inserted (1.11.2007) by The Financial Services and Markets Act 2000 (Recognition Requirements for Investment Exchanges and Clearing Houses) (Amendment) Regulations 2006 (S.I. 2006/3386), regs. 1, 3

F2 Words in reg. 3(1) inserted (15.6.2009) by The Financial Markets and Insolvency Regulations 2009 (S.I. 2009/853), regs. 1(1), 4(2)

Commencement Information

I1 Reg. 3 in force at 1.12.2001, see reg. 2

(1)

1989 c. 40.

(2)

1986 c. 60.

(3)

S.I. 1990/1504 (N.I. 10).