Part XVIIIU.K. [F1Recognised investment exchanges, clearing houses [F2, CSDs and other parties]]

Chapter IU.K. Exemption

GeneralU.K.

286 Qualification for recognition.U.K.

(1)The Treasury may make regulations setting out the requirements—

(a)which must be satisfied by an investment exchange [F3, clearing house or central securities depository] if it is to qualify as a body in respect of which [F4the appropriate regulator] 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 [F5, clearing house or central securities depository], 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 [F6, clearing house or central securities depository] 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 [F6, clearing house or central securities depository].

(4)“Market contract” means—

(a)a contract to which Part VII of the M1Companies Act 1989 applies as a result of section 155 of that Act or a contract to which Part V of the M2Companies (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.

F7(4A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F7(4B). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F7(4C). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F7(4D). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F7(4E). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F8(4F)Regulations under subsection (1) may confer power on the appropriate regulator to make rules for the purposes of the regulations or of any specified provision made by the regulations.]

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

[F9(6)In the case of an investment exchange, requirements resulting from this section are in addition to requirements which must be satisfied by the exchange as a result of section 290(1A) before [F10the FCA] may make a recognition order declaring the exchange to be a recognised investment exchange.]