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

  1. Introductory Text

  2. 1.Citation

  3. 2.Commencement

  4. 3.Interpretation

  5. 4.Recognition requirements for investment exchanges

  6. 5.Recognition requirements for clearing houses which are not central counterparties

  7. 5A.Recognition requirements for central counterparties

  8. 6.Method of satisfying recognition requirements

  9. 7.Dealings and transactions not involving investments

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

  11. 9.Effect of recognition under the Financial Services Act 1986

  12. 10.Revocation of recognition: action taken before commencement

  13. 11.FCA rules

  14. Signature

    1. SCHEDULE

      1. PART I Recognition requirements for investment exchanges

        1. Financial resources

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

        2. Suitability

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

        3. Management body

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

        4. Management body: significant exchanges

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

        5. Systems and controls

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

        6. Market making agreements

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

        7. Halting trading

          1. 3B.(1) The exchange must be able to—

        8. Direct electronic access

          1. 3C.Where the exchange permits direct electronic access to a trading...

        9. Co-location services

          1. 3D.The exchange's rules on co-location services must be transparent, fair...

        10. Fee structures

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

        11. Algorithmic trading

          1. 3F.The exchange must require members of and participants in trading...

        12. Tick size regimes

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

        13. Synchronisation of business clocks

          1. 3H.The exchange must synchronise the business clocks it uses to...

        14. Safeguards for investors

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

        15. Provision of pre-trade information about share trading

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

        16. Provision of post-trade information about share trading

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

        17. Publication of data regarding execution of transactions

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

        18. Disclosure by issuers of securities

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

        19. Promotion and maintenance of standards

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

        20. Rules and consultation

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

        21. Admission of financial instruments to trading

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

        22. Access to the exchange’s facilities

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

        23. Position management

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

        24. Position reporting

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

        25. Access to central counterparty, clearing and settlement facilities

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

        26. Choice of settlement facilities

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

        27. Suspension and removal of financial instruments from trading

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

        28. Discipline

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

        29. Complaints

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

        30. Specific requirements for regulated markets: execution of orders

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

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

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

        32. Specific requirements for regulated markets: access to a regulated market

          1. 9ZC.The rules of the exchange about access to, or membership...

        33. Multilateral systems

          1. 9ZD.An exchange must only operate a multilateral system as a...

        34. Operation of a multilateral trading facility or an organised trading facility

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

        35. Specific requirements for multilateral trading facilities: execution of orders

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

        36. Specific requirements for multilateral trading facilities: access to a facility

          1. 9C.The rules of the exchange about access to, or membership...

        37. Specific requirements for multilateral trading facilities: disclosure

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

        38. SME growth markets

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

        39. Specific requirements for organised trading facilities: execution of orders

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

        40. Specific requirements for organised trading facilities: disclosure

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

        41. Specific requirements for organised trading facilities: FCA request for information

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

        42. Provision of data reporting services

          1. 9I.An exchange providing data reporting services must comply with Title...

      2. PART II Recognition requirements for investment exchanges: default rules in respect of market contracts

        1. Default rules in respect of market contracts

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

        2. Content of rules

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

          2. 12.(1) This paragraph applies as regards contracts falling within section...

          3. 12A.The rules of the exchange must provide that, in the...

        3. Notification to other parties affected

          1. 13.The exchange must have adequate arrangements for ensuring that—

        4. Cooperation with other authorities

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

        5. Margin

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

      3. PART III Recognition requirements for clearing houses

        1. Financial resources

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

        2. Suitability

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

        3. Systems and controls

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

        4. Safeguards for investors

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

        5. Promotion and maintenance of standards

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

        6. Rules

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

        7. Access to central counterparty, clearing and settlement facilities

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

        8. Discipline

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

        9. Complaints

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

        10. Recovery Plans

          1. 23A.The clearing house must maintain a plan that sets out...

      4. PART IV Recognition requirements applying to clearing houses: default rules in respect of market contracts

        1. Default rules in respect of market contracts

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

        2. Content of rules

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

          2. 25A.The rules of the clearing house must provide that in...

        3. Notification to other parties affected

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

        4. Cooperation with other authorities

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

        5. Margin

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

      5. PART 5 Recognition requirements for central counterparties

        1. Requirements of the EMIR regulation

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

        2. Loss allocation

          1. 29A.The central counterparty must maintain effective arrangements (which may include...

        3. Recovery plans

          1. 29B.The central counterparty must maintain a plan that sets out...

        4. Market abuse or financial crime

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

        5. Access to central counterparty, clearing and settlement facilities

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

      6. PART 6 Recognition requirements applying to central counterparties: default rules

        1. Introduction

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

        2. Interpretation

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

        3. Portability of accounts: default rules going beyond requirements of EMIR

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

        4. Liquidation of accounts

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

        5. Loss allocation

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

  16. Explanatory Note