C1Part XVIII Recognised Investment Exchanges and Clearing Houses
Chapter I Exemption
General
285 Exemption for recognised investment exchanges and clearing houses.
1
In this Act—
a
“recognised investment exchange” means an investment exchange in relation to which a recognition order is in force; and
b
“recognised clearing house” means a clearing house in relation to which a recognition order is in force.
2
A recognised investment exchange is exempt from the general prohibition as respects any regulated activity—
a
which is carried on as a part of the exchange’s business as an investment exchange; or
b
which is carried on for the purposes of, or in connection with, the provision of clearing services by the exchange.
3
A recognised clearing house is exempt from the general prohibition as respects any regulated activity which is carried on for the purposes of, or in connection with, the provision of clearing services by the clearing house.
286 Qualification for recognition.
1
The Treasury may make regulations setting out the requirements—
a
which must be satisfied by an investment exchange or clearing house if it is to qualify as a body in respect of which the Authority may make a recognition order under this Part; and
b
which, if a recognition order is made, it must continue to satisfy if it is to remain a recognised body.
2
But if regulations contain provision as to the default rules of an investment exchange or clearing house, or as to proceedings taken under such rules by such a body, they require the approval of the Secretary of State.
3
“Default rules” means rules of an investment exchange or clearing house which provide for the taking of action in the event of a person’s appearing to be unable, or likely to become unable, to meet his obligations in respect of one or more market contracts connected with the exchange or clearing house.
4
“Market contract” means—
a
b
such other kind of contract as may be prescribed.
F14A
If regulations under subsection (1) require an investment exchange to make information available to the public in accordance with—
a
Article 29.1 of the markets in financial instruments directive and the Commission Regulation, or
b
Article 44.1 of that directive and that Regulation,
the regulations may authorise the Authority to waive the requirement in the circumstances specified in the relevant provisions.
4B
The “relevant provisions” for the purposes of subsection (4A) are—
a
in a case falling within paragraph (a) of that subsection, Article 29.2 of the markets in financial instruments directive and the Commission Regulation, and
b
in a case falling within paragraph (b) of that subsection, Article 44.2 of that directive and that Regulation.
4C
If regulations under subsection (1) require an investment exchange to make information available to the public in accordance with—
a
Article 30.1 of the markets in financial instruments directive and the Commission Regulation, or
b
Article 45.1 of that directive and that Regulation,
the regulations may authorise the Authority to defer the requirement in the circumstances specified, and subject to the requirements contained, in the relevant provisions.
4D
The “relevant provisions” for the purposes of subsection (4C) are—
a
in a case falling within paragraph (a) of that subsection, Article 30.2 of the markets in financial instruments directive and the Commission Regulation, and
b
in a case falling within paragraph (b) of that subsection, Article 45.2 of that directive and that Regulation.
4E
”The Commission Regulation” means Commission Regulation 1287/2006 of 10 August 2006.
5
Requirements resulting from this section are referred to in this Part as “recognition requirements”.
F26
In the case of an investment exchange, requirements resulting from this section are in addition to requirements which must be satisfied by the exchange as a result of section 290(1A) before the Authority may make a recognition order declaring the exchange to be a recognised investment exchange.
Pt. 18 applied in part (with modifications) (12.12.2011) by The Recognised Auction Platforms Regulations 2011 (S.I. 2011/2699), reg. 7, Sch. 2 (as amended (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), reg. 1, Sch. para. 37 (with regs. 7(4), 9(1)))