The Recognised Auction Platforms Regulations 2011

Regulation 6

SCHEDULE 1 U.K. Modifications of Part 8 of the Act in relation to behaviour related to auction platforms

1.  Section 118 M1 has effect as if— U.K.

(a) in subsection (1)(a), for sub-paragraphs (i) and (ii) there were substituted—

“(i) qualifying investments which are offered for sale on a prescribed auction platform, or”;

(b) in subsection (1)(b), the reference to subsections “(2) to (8)” were a reference in subsections “(2) to (8A)”;

(c) in subsection (4), for “market” each time it occurs, there were substituted “ auction platform ”;

(d) in subsection (5)—

(i) after “transactions” there were inserted “ , bids ”,

(ii) for “relevant market” there were substituted “ relevant auction platform ”;

(e) in subsection (6), after “transactions” there were inserted “ , bids ”;

(f) in subsection (8)—

(i) in paragraph (a) for “market”, there were substituted “ auction platform ”,

(ii) in paragraph (b)—

(aa) for “regular user of the market”, there were substituted “ regular user of the auction platform ”',

(bb) for “market in such an investment”, there were substituted “ auction of such an investment ”,

(iii) for “or (7)” there were substituted “ , (7) or (8A) ”;

(g) after that subsection there were inserted—

“(8A) The eighth is where the behaviour contravenes any of the provisions in Articles 38 to 41 of the emission allowance auctioning regulation.”.

Marginal Citations

M1 Section 118 was substituted, together with sections 118A to 118C, for the original section 118 by S.I. 2005/381, regulation 5, Schedule 2, paragraph 1.

2.  Section 118A has effect as if — U.K.

(a) in subsection (1), for paragraph (b), there were substituted—

“(b) in relation to—

(i) qualifying investments which are offered for sale on a prescribed auction platform,

(ii) in the case of section 118(2) and (3), investments which are related investments in relation to such qualifying investments.”;

(b) in subsection (2), for “prescribed market”, there were substituted “ prescribed auction platform ”.

3.  Section 118B has effect as if— U.K.

(a) the existing provision were subsection (1) of the section;

(b) in paragraphs (a) and (b) of that subsection, for “an issuer of qualifying investments” there were substituted “ an auction platform or its operator, an auctioneer or auction monitor ”;

(c) after subsection (1) there were inserted—

“(2) For the purposes of this section—

“auctioneer” has the same meaning as in paragraph 20 of Article 3 of the emission allowance auctioning regulation;

“auction monitor” means the person appointed pursuant to Article 24 of the emission allowance auctioning regulation to act as auction monitor of auctions conducted under the emission allowance auctioning regulation.”.

4.  Section 118C has effect as if— U.K.

(a) in subsection (2)—

(i) in paragraph (b), the words for “to one or more issuers of qualifying investments or” were omitted;

(ii) in paragraph (c), for “the price of the qualifying investments” there were substituted “ the price at which bids would be made for the qualifying investments ”;

(b) in subsection (4)—

(i) for “orders” there were each time substituted “ bids ”;

(ii) in paragraph (c), the words for “to one or more issuers of qualifying investments or” were omitted;

(iii) in paragraph (d), for “the price of those qualifying investments” there were substituted “ the price at which bids would be made for those qualifying investments ”;

(c) in subsection (5)(b), for “the price of qualifying investments” there were substituted “ the price at which bids would be made for qualifying investments ”.

5.  Section 119 M2 has effect as if in subsection (2)(d) and (e), after “specified markets” there were inserted “ or specified auction platforms ”. U.K.

Marginal Citations

M2 Paragraphs (d) and (e) were inserted into section 119(2) by S.I. 2005/381, regulation 5, Schedule 2, paragraph 2(1), (2).

6.  Section 124 has effect as if in subsection (2), after “the market” there were inserted “ or auction platform ”. U.K.

7.  Section 130A M3 has effect as if— U.K.

(a) in subsection (1)—

(i) in paragraph (a), for “the markets which are prescribed markets” there were substituted “ the auction platforms which are prescribed auction platforms ”, and

(ii) in paragraph (b), for “the prescribed markets” there were substituted “ the prescribed auction platforms ”;

(b) in subsection (2), for “markets or descriptions of market” there were substituted “ auction platforms or descriptions of auction platform ”;

(c) in subsection (3)—

(i) for the definition of “accepted market practices” there were substituted—

““accepted market practices” means—

(i)

in relation to an auction platform, practices that are reasonably expected on the auction platform or platforms in question, and are accepted by the Authority or, in the case of an auction platform situated in another EEA State, the competent authority of that EEA State, within the meaning of Article 35.5 of the emission allowance auctioning regulation,

(ii)

in relation to a market, practices that are reasonably expected in the financial market or markets in question and are accepted by the Authority or, in the case of a market situated in another EEA State, the competent authority of that EEA State within the meaning of Directive 2003/6/EC of the European Parliament and of the Council of 28 January 2003 on insider dealing and market manipulation (market abuse);”;

(ii) for the definition of “dealing”, there were substituted—

““dealing”, in relation to an investment, means bidding or withdrawing a bid for the investment, or agreeing to bid or withdraw a bid for the investment,”;

(iii) after the definition of “dealing” there were inserted—

““emission allowance auctioning regulation” means Commission Regulation (EU) No 1031/2010 of 12 November 2010 on the timing, administration and other aspects of auctioning of greenhouse gas emission allowances pursuant to the emission allowance trading directive;”

(iv) for the definition of “regular user”, there were substituted—

““regular user” in relation to a particular auction platform, means a reasonable person who regularly bids for qualifying investments on that platform;”.

Marginal Citations

M3 Section 130A was inserted by S.I. 2005/381, regulation 5, Schedule 2, paragraph 3.

Regulation 7

SCHEDULE 2 U.K. Modifications of Part 18 of the Act in relation to recognised auction platforms

1.  In section 285(2), reference to the exchange's business as an investment exchange includes a reference to its business as an auction platform. U.K.

2.  In section 291(3), reference to the obligations to which the body is subject under or by virtue of the Act is to be read as including a reference to the obligations to which it is subject under these Regulations or under the emission allowance auctioning regulation. U.K.

3.  In section 292A M4 — U.K.

(a) in subsection (1) reference to a recognition order is to be read as including a reference to a recognition order under regulation 2 of these Regulations;

(b) in subsections (2) and (4) references to the management of the exchange are to be read as including references to the management of the auction platform.

Marginal Citations

M4 Section 292A was inserted by S.I. 2007/126, regulation 3(2), Schedule 2, paragraphs 1 and 5.

4.  In section 293, in subsection (6)(a), reference to transactions effected on the exchange is to be read as including a reference to transactions effected on the auction platform. U.K.

F1 5.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

Textual Amendments

F1 Sch. 2 para. 5 omitted (10.4.2013) by virtue of The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) (No. 2) Order 2013 (S.I. 2013/642), arts. 1, 6(b)

6.  In section 299(2), reference to whether the body concerned should remain a recognised body is to be read as including whether it should remain a recognised auction platform. U.K.

7.  In section 300— U.K.

(a) in subsection (1)(a), reference to a recognition order under section 290 is to be read as including a reference to a recognition order under regulation 2 of these Regulations;

(b) in subsection (4), reference to the rules of an investment exchange is to be read as including a reference to rules made in relation to an auction platform.

8.  In section 301F(4), reference to any financial market operated by the recognised investment exchange is to be read as including a reference to any auction platform operated by it. U.K.

9.  Sections 290A, 300A to 300E, and sections 302 to 310 do not apply to a recognised investment exchange in its capacity as a recognised auction platform. U.K.

Regulation 8

SCHEDULE 3 U.K. Modifications of Chapter 3A of Part 18 of the Act in relation to recognised auction platforms and EEA market operators of auction platforms

1.  In section 312A M5 — U.K.

(a) in subsection (1), reference to a specified regulated market is to be read as including a reference to a specified auction platform;

(b) in subsection (2), reference to a market is to be read as including a reference to an auction platform.

Marginal Citations

M5 Sections 312A to 312D were inserted by S.I. 2007/126, Schedule 2, paragraphs 1 and 15.

2.  In section 312B— U.K.

(a) in subsection (1), reference to a regulated market is to be read as including a reference to an auction platform;

(b) in subsection (2), references to the markets in financial instruments directive are to be read as including references to the emission allowance auctioning regulation.

3.  In section 312C— U.K.

(a) in subsection (1), reference to a regulated market is to be read as including a reference to an auction platform;

(b) in subsection (5)(b), reference to the third sub-paragraph of Article 42.6 of the markets in financial instruments directive (in the case of relevant arrangements relating to a regulated market) is to be read as including a reference to that provision as applied to auction platforms by Article 35 of the emission allowance auctioning regulation (in the case of arrangements relating to a recognised auction platform).

4.  In section 312D, the definition of “applicable provision” shall be read as including, in addition to the cases set out in paragraphs (a) and (b)— U.K.

“(c) in the case of arrangements relating to an auction platform, the first sub-paragraph of Article 42.6 of the market in financial instruments directive as applied to auction platforms under Article 35 of the emission allowance auctioning regulation;”.