Part XVIII Recognised Investment Exchanges and Clearing Houses

Chapter I Exemption

General

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 F1the appropriate regulator 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)

a contract to which Part VII of the M1Companies Act 1989 applies as a result of section 155 of that Act or a contract to which Part V of the M2Companies (No. 2)(Northern Ireland) Order 1990 applies as a result of Article 80 of that Order; and

(b)

such other kind of contract as may be prescribed.

F2(4A)

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 F3the FCA 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 F4the FCA 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.

F5(4F)

Regulations under subsection (1) may confer power on the appropriate regulator to make rules for the purposes of the regulations or of any specified provision made by the regulations.

(5)

Requirements resulting from this section are referred to in this Part as “recognition requirements”.

F6(6)

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 F7the FCA may make a recognition order declaring the exchange to be a recognised investment exchange.