25. An Operator’s rules and practices—
(a)must bind system-members and participating issuers—
(i)so as to ensure the efficient processing of transfers of title to uncertificated units of a security in response to Operator-instructions; and
(ii)as to the action to be taken where transfer of title in response to a system-member instruction or an Operator-instruction cannot be effected;
(b)must make provision as to the manner in which a system-member or the relevant participating issuer may change the form in which that system-member holds units of a participating security (other than a wholly dematerialised security);
(c)must make provision for a participating issuer to cease to participate in respect of a participating security so as—
(i)to minimise so far as practicable any disruption to system-members in respect of their ability to transfer the relevant security; and
(ii)to provide the participating issuer with any relevant information held by the Operator relating to the uncertificated units of the relevant security held by system-members;
(d)must make provision for the orderly termination of participation by system-members and system-participants whose participation is disruptive to other system-members or system-participants or to participating issuers;
(e)must make provision—
(i)as to which of the Operator’s records are to constitute an Operator register of securities in relation to a participating security, or a participating security of a particular kind; and
(ii)as to the times at which, and the manner in which, a participating issuer may inspect an Operator register of securities in accordance with paragraph 12;
(f)if they make provision for the designation of a subsidiary undertaking as a relevant nominee, must require that the relevant nominee maintain adequate records of—
(i)the names of the persons who have an interest in the securities it holds; and
(ii)the nature and extent of their interests; and
(g)must make provision for the authentication by the Operator of any written notification given under regulation 25(3) or 32(2)(c).
26. An Operator’s rules and practices must require—
(a)that each system-participant is able to send and receive properly authenticated dematerialised instructions;
(b)that each system-member has arrangements—
(i)for properly authenticated dematerialised instructions attributable to him to be sent;
(ii)for properly authenticated dematerialised instructions to be received by or for him; and
(iii)with a settlement bank for payments to be made, where appropriate, for units of a security transferred by means of the relevant system; and
(c)that each participating issuer is able to respond with sufficient speed to Operator-instructions.
27. An Operator must have rules which require system-users and former system-users to provide him with such information in their possession as he may require in order to meet his obligations under these Regulations.