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

[F1 PART 5 U.K. Recognition requirements for central counterparties

Textual Amendments

F1 Sch. Pts. 5, 6 inserted (1.4.2013) by The Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) Regulations 2013 (S.I. 2013/504), regs. 1(2), 5(6) (with regs. 52-58)

Requirements of the EMIR regulation U.K.

29.   A central counterparty providing clearing services must meet the requirements set out in the EMIR regulation (within the meaning of section 313 of the Act). U.K.

[F2 Loss allocation U.K.

Textual Amendments

F2 Sch. paras. 29A, 29B and cross-headings inserted (1.2.2014 for specified purposes) by The Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) (No. 2) Regulations 2013 (S.I. 2013/1908), regs. 1(3)(a)(b), 3(4)

29A.   The central counterparty must maintain effective arrangements (which may include rules) for ensuring that losses that— U.K.

(a) arise otherwise than as a result of clearing member default; and

(b) threaten the central counterparty’s solvency;

are allocated with a view to ensuring that the central counterparty can continue to provide the services and carry on the activities specified in its recognition order.

Recovery plans U.K.

29B.   The central counterparty must maintain a plan that sets out the steps that it will take in order to maintain the continuity of the services that it provides and the activities that it carries on that are specified in its recognition order in the event that such continuity is threatened.] U.K.

Market abuse or financial crime U.K.

30.   The central counterparty must ensure that appropriate measures are adopted to reduce the extent to which its facilities can be used for a purpose connected with market abuse or financial crime, and to facilitate their detection and monitor their incidence. U.K.

Access to central counterparty, clearing and settlement facilities U.K.

31.— (1) The central counterparty must make transparent and non-discriminatory rules, based on objective criteria, governing access to central counterparty, clearing or settlement facilities provided by it. U.K.

(2) The rules under sub-paragraph (1) must enable an investment firm or a credit institution authorised by the competent authority of another EEA State (including a branch established in the United Kingdom of such a firm or institution) to have access to those facilities on the same terms as a UK firm for the purposes of finalising or arranging the finalisation of transactions in financial instruments.

(3) The central counterparty may refuse access to those facilities on legitimate commercial grounds.]