TITLE VINON-DISCRIMINATORY CLEARING ACCESS FOR FINANCIAL INSTRUMENTS

Article 36Non-discriminatory access to a trading venue

1

Without prejudice to Article 8 of Regulation (EU) No 648/2012 F6and subject to paragraph 1A, a trading venue shall provide trade feeds on a non-discriminatory and transparent basis, including as regards fees related to access, upon request to any CCP authorised or recognised by Regulation (EU) No 648/2012 that wishes to clear transactions in financial instruments that are concluded on that trading venue. That requirement does not apply to any derivative contract that is already subject to the access obligations under Article 8 of Regulation (EU) No 648/2012.

A trading venue is not bound by this Article if it is connected by close links to a CCP which has given notification that it is availing of the transitional arrangements under Article 35(5).

F51A.

Paragraph 1 does not apply in relation to exchange-traded derivatives.

2

A request to access a trading venue by a CCP shall be formally submitted to a trading venue, F1the competent authority of the trading venue and the competent authority of the CCP.

3

The trading venue shall provide a written response to the CCP within three months in the case of transferable securities and money market instruments, F7... either permitting access, under the condition that the relevant competent authority has granted access pursuant to paragraph 4, or denying access. The trading venue may deny access only under the conditions specified under paragraph 6(a). When access is denied the trading venue shall provide full reasons in its response and inform its competent authority in writing of the decision. F2... The trading venue shall also provide such notification and reasoning to the competent authority of the CCP. The trading venue shall make access possible within three months of providing a positive response to the access request.

4

The competent authority of the trading venue or that of the CCP shall grant a CCP access to a trading venue only where such access:

F10a

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b

would not threaten the smooth and orderly functioning of the markets, in particular due to liquidity fragmentation and the trading venue has put in place adequate mechanisms to prevent such fragmentation, or would not adversely affect systemic risk.

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If a competent authority denies access it shall issue its decision within two months following receipt of the request referred to in paragraph 2 and provide full reasons to the other competent authority, the trading venue and the CCP including the evidence on which its decision is based.

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6

F3The FCA may, having consulted the Bank of England, make technical standards to specify:

a

the specific conditions under which an access request may be denied by a trading venue, including conditions based on the anticipated volume of transactions, the number of users, arrangements for managing operational risk and complexity or other factors creating significant undue risks;

b

the conditions under which access shall be granted, including confidentiality of information provided regarding financial instruments during the development phase and the non-discriminatory and transparent basis as regards fees related to access;

c

the conditions under which granting access will threaten the smooth and orderly functioning of the markets, or would adversely affect systemic risk;

F11d

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