C1 Part XVIIIF6Recognised investment exchanges, clearing houses and CSDs
Pt. 18 applied in part (with modifications) (12.12.2011) by The Recognised Auction Platforms Regulations 2011 (S.I. 2011/2699), reg. 7, Sch. 2 (as amended (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), reg. 1, Sch. para. 37 (with regs. 7(4), 9(1)))
Chapter I Exemption
Applications for recognition
I1290 Recognition orders.
F81
If it appears to the appropriate regulator that the applicant satisfies the recognition requirements applicable in its case, the regulator may—
a
where the application is made under section 287, make a recognition order declaring the applicant to be a recognised investment exchange;
b
where the application is made under section 288(1) and Article 17 of the EMIR regulation allows authorisation to be granted, make a recognition order (“a central counterparty recognition order”) granting authorisation for the purposes of that Article and declaring the applicant to be a recognised central counterparty; F16...
c
where the application is made under section 288(1A), make a recognition order declaring the applicant to be a recognised clearing house which is not a recognised central counterparty F18; or
d
where the application is made under section 288A, make a recognition order (a “CSD recognition order”) granting authorisation for the purposes of Article 16 of the CSD regulation and declaring the applicant to be a recognised CSD.
F11A
In the case of an application for an order declaring the applicant to be a recognised investment exchange, the reference in subsection (1) to the recognition requirements applicable in its case includes a reference to requirements contained in any directly applicable F13EU regulation made under the markets in financial instruments directive F9or the markets in financial instruments regulation.
1B
In the case mentioned in subsection (1A), the application must be determined by F3the FCA before the end of the period of six months beginning with the date on which it receives the completed application.
1C
Subsection (1B) does not apply in the case of an application by an overseas applicant.
F121D
A central counterparty recognition order must specify the services or activities linked to clearing which the applicant may provide or perform and the classes of financial instruments covered by the order.
F51E
A CSD recognition order must specify—
a
the core services listed in Section A of the Annex to the CSD regulation which the applicant is authorised to provide pursuant to Article 16 or 19(1)(a) or (c) of that regulation, and
b
any non-banking-type ancillary services listed in or permitted under Section B of that Annex which the applicant is authorised to provide, including services notified under Article 19 of the CSD regulation.
1F
A CSD recognition order must also record the terms of any of the following authorisations granted to the CSD under the CSD regulation or notifications made by the CSD under that regulation—
a
an authorisation under Article 19(1) of the CSD regulation to outsource a core service under Article 30 of that regulation,
b
an authorisation under Article 19(1)(d) of the CSD regulation (settlement of cash leg of securities settlement system in the books of another settlement agent),
c
an authorisation under Article 19(1)(e) of the CSD regulation (setting up interoperable link),
d
a notification under Article 19(5) of the CSD regulation (other CSD links),
e
an authorisation under Article 54 or 56 of the CSD regulation to provide (in accordance with Article 54(2)(a) or (b)) any banking-type ancillary service listed in or permitted under Section C of the Annex to that regulation, and
f
an authorisation to provide investment services and activities in addition to the services explicitly listed in Sections A and B of the Annex to the CSD regulation.
F72
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3
4
A recognition order must specify a date on which it is to take effect.
F44A
If the Bank of England has not made a decision in relation to an application under section 288A within six months of that application being complete, the applicant may refer the matter to the Tribunal.
4B
For the purposes of subsection (4A), an application is “complete” when the Bank of England informs the applicant that it is complete pursuant to Article 17(3) of the CSD regulation.
5
Section 298 has effect in relation to a decision to refuse to make a recognition order F14in respect of an investment exchange or a clearing house which is not a central counterparty—
a
as it has effect in relation to a decision to revoke such an order; and
b
as if references to a recognised body were references to the applicant.
F25A
Section 298 has effect in relation to a decision to refuse an application under section 288A—
a
as it has effect in relation to a decision to make a revocation order under section 297(1B); and
b
as if references to a recognised body were references to the applicant.
F156
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F117
Where—
a
a body corporate or unincorporated association has made an application under section 288(1), and
b
the Bank of England has determined that application in accordance with Article 17 of the EMIR regulation,
any previous recognition order under section 290(1)(c) or 292(2)(b) shall cease to be valid.
Pt. 18 heading substituted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), regs. 1, 2(8) (with regs. 7(4), 9(1))