The Financial Services and Markets Act 2000 (Recognition Requirements for Investment Exchanges and Clearing Houses) Regulations 2001

3Interpretation

4Recognition requirements for investment exchanges

5Recognition requirements for clearing houses which are not central counterparties

5ARecognition requirements for central counterparties

6Method of satisfying recognition requirements

7Dealings and transactions not involving investments

8Exchanges and clearing houses which do not enter into market contracts

9Effect of recognition under the Financial Services Act 1986

10Revocation of recognition: action taken before commencement

PART IRecognition requirements for investment exchanges

Financial resources

1(1) The exchange must have financial resources sufficient for the...

2(1) The exchange must be a fit and proper person...

Management body

2A(1) The composition of the management body of an exchange...

Management body: significant exchanges

2B(1) If an exchange is significant the following requirements apply...

Systems and controls

3(1) The exchange must ensure that the systems and controls...

Market making agreements

3A(1) The exchange must— (a) have written agreements with all...

Halting trading

3B(1) The exchange must be able to—

Direct electronic access

3CWhere the exchange permits direct electronic access to a trading...

Co-location services

3DThe exchange's rules on co-location services must be transparent, fair...

3E(1) The exchange's fee structure, for all fees it charges...

Algorithmic trading

3FThe exchange must require members of and participants in trading...

Tick size regimes

3G(1) The exchange must adopt tick size regimes in respect...

Synchronisation of business clocks

3HThe exchange must synchronise the business clocks it uses to...

Safeguards for investors

4(1) The exchange must ensure that business conducted by means...

Provision of pre-trade information about share trading

4A(1) The exchange must make arrangements for—

Provision of post-trade information about share trading

4B(1) The exchange must make arrangements for the price, volume...

Publication of data regarding execution of transactions

4C(1) The exchange must make available to the public, without...

Disclosure by issuers of securities

5(1) In this paragraph— “admission to trading”, “securities” and “regulated...

Promotion and maintenance of standards

6(1) The exchange must be able and willing to promote...

Rules and consultation

7(1) The exchange must ensure that appropriate procedures are adopted...

Admission of financial instruments to trading

7A(1) The exchange must make clear and transparent rules concerning...

Access to the exchange’s facilities

7B(1) The exchange must make transparent and non-discriminatory rules, based...

Position management

7BA(1) An exchange operating a trading venue which trades commodity...

Position reporting

7BB(1) This paragraph applies to an exchange operating a trading...

Access to central counterparty, clearing and settlement facilities

7C(1) This paragraph applies to an exchange which provides central...

Choice of settlement facilities

7D(1) The rules of the exchange must permit a user...

Suspension and removal of financial instruments from trading

7E(1) The rules of the exchange must provide that the...

8(1) The exchange must have— (a) effective arrangements (which include...

9(1) The exchange must have effective arrangements for the investigation...

Specific requirements for regulated markets: execution of orders

9ZA(1) An exchange must have non-discretionary rules for the execution...

Specific requirements for regulated markets: admission of financial instruments to trading

9ZB(1) The rules of the exchange must ensure that all—...

Specific requirements for regulated markets: access to a regulated market

9ZCThe rules of the exchange about access to, or membership...

Multilateral systems

9ZDAn exchange must only operate a multilateral system as a...

Operation of a multilateral trading facility or an organised trading facility

9A(1) An exchange operating a multilateral trading facility or an...

Specific requirements for multilateral trading facilities: execution of orders

9B(1) An exchange must have non-discretionary rules for the execution...

Specific requirements for multilateral trading facilities: access to a facility

9CThe rules of the exchange about access to, or membership...

Specific requirements for multilateral trading facilities: disclosure

9D(1) The rules of the exchange must provide that where...

SME growth markets

9E(1) An exchange operating a multilateral trading facility which has...

Specific requirements for organised trading facilities: execution of orders

9F(1) An exchange operating an organised trading facility must—

Specific requirements for organised trading facilities: disclosure

9G(1) The rules of the exchange must provide that where...

Specific requirements for organised trading facilities: FCA request for information

9H(1) An exchange must, when requested to do so, provide...

Provision of data reporting services

9IAn exchange providing data reporting services must comply with Title...

PART IIRecognition requirements for investment exchanges: default rules in respect of market contracts

Default rules in respect of market contracts

10(1) The exchange must have default rules which, in the...

Content of rules

11(1) This paragraph applies as regards contracts falling within section...

12(1) This paragraph applies as regards contracts falling within section...

12AThe rules of the exchange must provide that, in the...

Notification to other parties affected

13The exchange must have adequate arrangements for ensuring that—

Cooperation with other authorities

14The exchange must be able and willing to cooperate, by...

15(1) Where the exchange provides clearing services, the rules of...

PART IIIRecognition requirements for clearing houses

Financial resources

16(1) The clearing house must have financial resources sufficient for...

17(1) The clearing house must be a fit and proper...

Systems and controls

18(1) The clearing house must ensure that the systems and...

Safeguards for investors

19(1) The clearing house must ensure that its facilities are...

Promotion and maintenance of standards

20(1) The clearing house must be able and willing to...

21(1) The clearing house must ensure that appropriate procedures are...

Access to central counterparty, clearing and settlement facilities

21A(1) The clearing house must make transparent and non-discriminatory rules,...

22(1) The clearing house must have effective arrangements for monitoring...

23(1) The clearing house must have effective arrangements for the...

23AThe clearing house must maintain a plan that sets out...

PART IVRecognition requirements applying to clearing houses: default rules in respect of market contracts

Default rules in respect of market contracts

24(1) The clearing house must have default rules which, in...

Content of rules

25(1) The rules must provide— (a) for all rights and...

25AThe rules of the clearing house must provide that in...

Notification to other parties affected

26The clearing house must have adequate arrangements for ensuring that...

Cooperation with other authorities

27The clearing house must be able and willing to cooperate,...

28(1) The rules of the clearing house must provide that...

PART 5Recognition requirements for central counterparties

Requirements of the EMIR regulation

29A central counterparty providing clearing services must meet the requirements...

Loss allocation

29AThe central counterparty must maintain effective arrangements (which may include...

29BThe central counterparty must maintain a plan that sets out...

Market abuse or financial crime

30The central counterparty must ensure that appropriate measures are adopted...

Access to central counterparty, clearing and settlement facilities

31(1) The central counterparty must make transparent and non-discriminatory rules,...

PART 6Recognition requirements applying to central counterparties: default rules

32This Part sets out recognition requirements which apply to the...

33In this Part— (a) “assets” has the meaning given by...

Portability of accounts: default rules going beyond requirements of EMIR

34(1) Sub-paragraph (2) applies to any provisions of the default...

Liquidation of accounts

35The default rules must contain provision ensuring that, after the...

Loss allocation

36The default rules must contain provision ensuring that losses that—...

2001 No. 995

FINANCIAL SERVICES AND MARKETS

The Financial Services and Markets Act 2000 (Recognition Requirements for Investment Exchanges and Clearing Houses) Regulations 2001

Made9th April 2001

Laid before Parliament10th April 2001

Coming into force in accordance with regulation 2

The Treasury, in exercise of the powers conferred on them by sections 286(1), 426, 427 and 428(3) of the Financial Services and Markets Act 20001, and with the approval of the Secretary of State under section 286(2) of that Act, hereby make the following Regulations: