Part XVIII

Recognised investment exchanges, clearing houses , CSDs and other parties
Chapter I

Exemption

Supervision

Additional power to direct recognised central counterparties
296A
1
The Bank of England may direct a
recognised central counterparty
to take, or refrain from taking, specified action if the Bank is satisfied that it is necessary to give the direction, having regard to the public interest in—
a
protecting and enhancing the stability of the
UK
financial system,
b
maintaining public confidence in the stability of the
UK
financial system,
c
maintaining the continuity of the
... clearing services provided by the
recognised central counterparty
, and
d
maintaining and enhancing the financial resilience of the
recognised central counterparty
.
2
The direction may, in particular—
a
specify the time for compliance with the direction,
b
require the rules of the
recognised central counterparty
to be amended, and
c
override such rules (whether generally or in their application to a particular case).
3
The direction may not require the
recognised central counterparty
—
a
to take any steps for the purpose of securing its compliance with—
i
the recognition requirements, or
ii
any obligation of a kind mentioned in section 296(1)(b) or (1A), or
b
to accept a transfer of property, rights or liabilities of another
recognised central counterparty
.
4
If the direction is given in reliance on section 298(7) the Bank must, within a reasonable time of giving the direction, give the
recognised central counterparty
a statement of its reasons—
a
for giving the direction, and
b
for relying on section 298(7).
5
The direction is enforceable, on the application of the Bank, by an injunction or, in Scotland, by an order for specific performance under section 45 of the Court of Session Act 1988.
6
The Bank may revoke a direction given under this section.
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)))
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))
S. 296A inserted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 31, 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
Words in Pt. 18 heading substituted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), ss. 18(2), 86(3); S.I. 2023/779, reg. 4(m)
Words in s. 296A(1)-(4) substituted (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), 3(11)(c) (with regs. 52-58)
Words in s. 296A(1) substituted (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), 3(11)(b)(i) (with regs. 52-58)
Words in s. 296A heading substituted (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), 3(11)(a) (with regs. 52-58)
Words in s. 296A(1)(c) omitted (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), 3(11)(b)(ii) (with regs. 52-58)