The Uncertificated Securities Regulations 2001

5.— [F1 (1) A relevant system must satisfy the requirements of sub-paragraphs (3) to (6).] U.K.

F2 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) Each dematerialised instruction must be authenticated—

[F3 (a) in accordance with the specifications of the Operator, and those specifications shall provide that each dematerialised instruction is identifiable as being from the computers of the Operator or of a particular system-participant; or]

(b) if it is sent to the Operator by, or by the Operator to, a depositary, a clearing house or an exchange, in accordance with specifications of that depositary, clearing house or exchange to which the Operator has agreed and which provide that each dematerialised instruction—

(i) is identifiable as being from the computers of the Operator or of the depositary, clearing house or exchange which sent it; F4 ...

F4 (ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) Each dematerialised instruction must, in accordance with any relevant rules of the Operator and with the specifications of the Operator or the specifications referred to in subparagraph (3)(b) (as the case may be), express by whom it has been sent and, where relevant, on whose behalf it has been sent.

(5) Each dematerialised instruction must, in accordance with any relevant rules of the Operator and with the specifications of the Operator or the specifications referred to in subparagraph (3)(b) (as the case may be), indicate—

(a) where it is sent to a system-participant or the Operator, that it is addressed to that system-participant or the Operator;

(b) where it is sent to a person who is using the facilities of a sponsoring system-participant to receive dematerialised instructions, that it is addressed to that person and the sponsoring system-participant; and

(c) where it is sent to the Operator in order for him to send an Operator-instruction to a system-participant, that it is addressed to the Operator, to the system-participant and, if the system-participant is acting as a sponsoring system-participant, to the relevant person on whose behalf the sponsoring system-participant receives dematerialised instructions.

(6) The relevant system must minimise the possibility for a system-participant to send a dematerialised instruction on behalf of a person from whom he has no authority.

(7) For the purposes of this paragraph—

“clearing house” means a body or association—

(a)

which is a recognised clearing house within section 285(1)(b) of the 2000 Act;

(b)

which is authorised under that Act to provide clearing services in the United Kingdom; F5 ...

(ba)

[F6 which is F7 ... a third country central counterparty within the meaning of section 285(1) of the 2000 Act; or]

(d)

which provides services outside the United Kingdom which are similar in nature to those provided by any such body or association, and which is regulated or supervised in the provision of those services by a regulatory body or agency of government;

“depositary” means [F8 [F9 a CSD or third-country CSD within the meaning of the CSD regulation as amended from time to time] or] a body or association carrying on business outside the United Kingdom with whom an Operator has made arrangements—

(a)

to enable system-members to hold (whether directly or indirectly) and transfer title to securities (other than participating securities) by means of facilities provided by that body or association; or

(b)

to enable that body or association to permit persons to whom it provides services in the course of its business to hold (whether directly or indirectly) and transfer title to participating securities by means of the Operator’s relevant system; and

“exchange” means a body or association—

(a)

which is a recognised investment exchange within section 285(1)(a) of the 2000 Act;

(b)

which is authorised under that Act to provide a facility for the matching and execution of transactions in securities in the United Kingdom; or

(c)

which provides services outside the United Kingdom which are similar in nature to those provided by any such body or association, and which is regulated or supervised in the provision of those services by a regulatory body or agency of government.

Textual Amendments

F1 Sch. 1 para. 5(1) substituted (27.3.2019) by The Uncertificated Securities (Amendment and EU Exit) Regulations 2019 (S.I. 2019/679), regs. 1(2), 4(9)(c)(i) (with regs. 10-12)

F2 Sch. 1 para. 5(2) omitted (27.3.2019) by virtue of The Uncertificated Securities (Amendment and EU Exit) Regulations 2019 (S.I. 2019/679), regs. 1(2), 4(9)(c)(ii) (with regs. 10-12)

F3 Sch. 1 para. 5(3)(a) substituted (27.3.2019) by The Uncertificated Securities (Amendment and EU Exit) Regulations 2019 (S.I. 2019/679), regs. 1(2), 4(9)(c)(iii)(aa) (with regs. 10-12)

F4 Sch. 1 para. 5(3)(b)(ii) and word omitted (27.3.2019) by virtue of The Uncertificated Securities (Amendment and EU Exit) Regulations 2019 (S.I. 2019/679), regs. 1(2), 4(9)(c)(iii)(bb) (with regs. 10-12)

F5 Word in Sch. 1 para. 5(7) omitted (1.4.2013) by virtue of The Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) Regulations 2013 (S.I. 2013/504), regs. 1(2), 36(2)(a) (with regs. 52-58)

F6 Words in Sch. 1 para. 5(7) inserted (1.4.2013) by The Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) Regulations 2013 (S.I. 2013/504), regs. 1(2), 36(2)(b) (with regs. 52-58)

F7 Words in Sch. 1 para. 5(7) omitted (31.12.2020) by virtue of The Uncertificated Securities (Amendment and EU Exit) Regulations 2019 (S.I. 2019/679), regs. 1(3), 14(3)(a) (with regs. 10-12); 2020 c. 1, Sch. 5 para. 1(1)

F8 Words in Sch. 1 para. 5(7) inserted (27.3.2019) by The Uncertificated Securities (Amendment and EU Exit) Regulations 2019 (S.I. 2019/679), regs. 1(2), 4(9)(c)(iv) (with regs. 10-12)

F9 Words in Sch. 1 para. 5(7) substituted (31.12.2020) by The Uncertificated Securities (Amendment and EU Exit) Regulations 2019 (S.I. 2019/679), regs. 1(3), 14(3)(b) (with regs. 10-12); 2020 c. 1, Sch. 5 para. 1(1)

Commencement Information

I1 Sch. 1 para. 5 in force at 26.11.2001, see reg. 1