SCHEDULE 1REQUIREMENTS FOR APPROVAL OF A PERSON AS OPERATOR

Rules and practices

I126

An Operator’s rules and practices must require—

a

that each system-participant is able to send and receive properly authenticated dematerialised instructions;

b

that each system-member has arrangements—

i

for properly authenticated dematerialised instructions attributable to him to be sent;

ii

for properly authenticated dematerialised instructions to be received by or for him; and

iii

with a settlement bank for payments to be made, where appropriate, for units of a security transferred by means of the relevant system; and

c

that each participating issuer is able to respond with sufficient speed to Operator-instructions.