286Qualification for recognition
(1)The Treasury may make regulations setting out the requirements—
(a)which must be satisfied by an investment exchange or clearing house if it is to qualify as a body in respect of which the Authority 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 or clearing house, 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 or clearing house 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 or clearing house.
(4)“Market contract” means—
(a)a contract to which Part VII of the [1989 c. 40.] Companies Act 1989 applies as a result of section 155 of that Act or a contract to which Part V of the [S.I. 1990/1504 (N.I. 10).] Companies (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.
(5)Requirements resulting from this section are referred to in this Part as “recognition requirements”.