Part XVIIIRecognised Investment Exchanges and Clearing Houses

Chapter IExemption

General

286Qualification 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

a contract to which Part VII of the [1989 c. 40.] Companies Act 1989 applies as a result of section 155 of that Act or a contract to which Part V of the [S.I. 1990/1504 (N.I. 10).] Companies (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.

5

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