C1 Part XVIIIF9Recognised investment exchanges, clearing houses F14, CSDs and other parties

Annotations:
Amendments (Textual)
Modifications etc. (not altering text)

Chapter I Exemption

Applications for recognition

I1C2F13292 Overseas investment exchanges and overseas clearing houses.

1

An application under section 287 or F7288(1A) by an overseas applicant must contain the address of a place in the United Kingdom for the service on the applicant of notices or other documents required or authorised to be served on it under this Act.

2

If it appears to F1the appropriate regulator that an overseas applicant satisfies the requirements of subsection (3) it may make a recognition order declaring the applicant to be—

a

a recognised investment exchange;

b

a recognised clearing house F8which is not a central counterparty.

3

The requirements are that—

F10a

investors are afforded protection equivalent to that which they would be afforded if the body concerned were required to comply with—

i

recognition requirements, other than any such requirements which are expressed in regulations under section 286 not to apply for the purposes of this paragraph, and

ii

F12requirements contained in any of the following—

aa

any EU regulation, originally made under the markets in financial instruments directive, which is F15assimilated direct legislation;

bb

any EU regulation, originally made under the markets in financial instruments regulation, which is F16assimilated direct legislation;

cc

any subordinate legislation (within the meaning of the Interpretation Act 1978) made under the markets in financial instruments regulation on or after IP completion day;

b

there are adequate procedures for dealing with a person who is unable, or likely to become unable, to meet his obligations in respect of one or more market contracts connected with the investment exchange or clearing house;

c

the applicant is able and willing to co-operate with F2the appropriate regulator by the sharing of information and in other ways;

d

adequate arrangements exist for co-operation between F3the appropriate regulator and those responsible for the supervision of the applicant in the country or territory in which the applicant’s head office is situated.

4

In considering whether it is satisfied as to the requirements mentioned in subsection (3)(a) and (b), F4the appropriate regulator is to have regard to—

a

the relevant law and practice of the country or territory in which the applicant’s head office is situated;

b

the rules and practices of the applicant.

5

In relation to an overseas applicant and a body or association declared to be a recognised investment exchange or recognised clearing house by a recognition order made by virtue of subsection (2)—

a

the reference in section 313(2) to recognition requirements is to be read as a reference to matters corresponding to the matters in respect of which provision is made in the recognition requirements;

b

sections 296(1) and 297(2) have effect as if the requirements mentioned in section 296(1)(a) and section 297(2)(a) were those of subsection (3)(a), (b), and (c) of this section;

c

section 297(2) has effect as if the grounds on which a recognition order may be revoked under that provision included the ground that in the opinion of F5the appropriate regulator arrangements of the kind mentioned in subsection (3)(d) no longer exist.

F66

Where a recognised clearing house is F11... recognised as a third country central counterparty, any previous recognition order under section 290(1)(c) or 292(2)(b) shall cease to be valid.