UK Statutory Instrument 2001 United Kingdom

The Financial Services and Markets Act 2000 (Recognition Requirements for Investment Exchanges , Clearing Houses and Central Securities Depositories ) Regulations 2001

View on legislation.gov.uk (opens in a new tab) Ask Guv about this Act

At a glance

What's here

61 compliance obligations

Who this Act binds

Plus 1 non-business duty on Crown ministers, regulators, local authorities or tribunals — shown collapsed under each section below.

What this Act requires

Sections that create concrete duties on businesses or carry penalties. Procedural and definitional sections are folded into the “Browse other sections” expander at the bottom of each group. Click any section title to read the source text on legislation.gov.uk.

sch. para. 10

sch. para. 10

  • Maintain default rules to handle member defaults on market contracts
sch. para. 11

sch. para. 11

Other duties (1) — Crown / regulator
  • Your exchange must have default rules to close out and net unsettled market contracts Statutory regulator
sch. para. 12a

sch. para. 12a

  • Include default fund restriction rule in exchange rules
sch. para. 14

sch. para. 14

  • Cooperate with authorities by sharing information on member defaults
sch. para. 16

sch. para. 16

  • Ensure your clearing house has sufficient financial resources
sch. para. 17

sch. para. 17

  • Ensure clearing house is fit and proper for recognised functions
sch. para. 18

sch. para. 18

  • Ensure your systems and controls are adequate and appropriate
sch. para. 19

sch. para. 19

  • Provide proper investor protection and meet service standards
sch. para. 2

sch. para. 2

  • Ensure the exchange and its management are fit and proper
sch. para. 20

sch. para. 20

  • Promote integrity and fair dealing, and cooperate with regulators
sch. para. 21

sch. para. 21

  • Adopt procedures for making, reviewing and amending clearing house rules, and consult users
sch. para. 21a

sch. para. 21a

  • Make transparent and non-discriminatory rules for access to clearing facilities
sch. para. 22

sch. para. 22

  • Set up effective rules enforcement, complaints and appeals system
sch. para. 23

sch. para. 23

  • Set up independent complaint investigation system for regulatory functions
sch. para. 23a

sch. para. 23a

  • Maintain a continuity plan for your exempt activities
sch. para. 24

sch. para. 24

  • Have default rules to close out member positions if they cannot meet obligations
sch. para. 25a

sch. para. 25a

  • Include default fund use restrictions in clearing house rules
sch. para. 26

sch. para. 26

  • Notify parties to unsettled contracts of default promptly
sch. para. 27

sch. para. 27

  • Clearing house must cooperate with authorities on defaults
sch. para. 28

sch. para. 28

  • Protect client funds from being used for defaulting member's own losses
sch. para. 29

sch. para. 29

  • Central counterparties must comply with EMIR requirements
sch. para. 29a

sch. para. 29a

  • Maintain arrangements to allocate non-default losses threatening solvency
sch. para. 29b

sch. para. 29b

  • Maintain a continuity plan for your recognised services and activities
sch. para. 2a

sch. para. 2a

  • Ensure your exchange's management body is competent, independent, and well-governed
sch. para. 2b

sch. para. 2b

  • Ensure management body complies with director limits and nomination committee rules
sch. para. 3

sch. para. 3

  • Maintain adequate and effective systems and controls for your exchange
sch. para. 30

sch. para. 30

  • Adopt measures to prevent, detect and monitor market abuse and financial crime
sch. para. 31

sch. para. 31

  • Make transparent and non-discriminatory access rules
sch. para. 31a

sch. para. 31a

  • Set up internal whistleblowing procedures for employees
sch. para. 34

sch. para. 34

  • Ensure default rules include transfer summary, consent, fairness, and time limit
sch. para. 37

sch. para. 37

  • Meet requirements of CSD regulation and related legislation
sch. para. 38

sch. para. 38

  • Make transparent, non-discriminatory rules for access to settlement facilities
sch. para. 39

sch. para. 39

  • Set up internal whistleblowing procedures for employees
sch. para. 3a

sch. para. 3a

  • Implement market making agreements and liquidity schemes for your trading venue
sch. para. 3b

sch. para. 3b

  • Halting trading and cancelling transactions on your exchange
sch. para. 3c

sch. para. 3c

  • Set and enforce rules for direct electronic access to your trading venue
sch. para. 3f

sch. para. 3f

  • Require members to flag algorithmic trading orders
sch. para. 3g

sch. para. 3g

  • Adopt and calibrate tick size regimes for trading venues
sch. para. 3h

sch. para. 3h

  • Synchronise business clocks for accurate time-stamping of reportable events
sch. para. 4

sch. para. 4

  • Ensure orderly trading and investor protection on your exchange
sch. para. 40

sch. para. 40

  • Comply with MiFID and MiFIR rules if you offer extra investment services as a central securities depository
sch. para. 6

sch. para. 6

  • Promote integrity and fair dealing; cooperate with regulators
sch. para. 7

sch. para. 7

  • Adopt procedures for rule-making and consult users on rules and penalty income
sch. para. 7b

sch. para. 7b

  • You must make transparent rules for access to your facilities and report user lists to the FCA
sch. para. 7ba

sch. para. 7ba

  • Apply position management controls to commodity derivatives trades
sch. para. 7bb

sch. para. 7bb

  • Publish weekly position reports and provide daily breakdown to FCA
sch. para. 7c

sch. para. 7c

  • Make access rules transparent, fair and based on objective criteria
sch. para. 7e

sch. para. 7e

  • Manage suspension and removal of financial instruments and notify FCA
sch. para. 9

sch. para. 9

  • Set up effective complaint handling and whistleblowing procedures
sch. para. 9a

sch. para. 9a

  • Operate regulated market and comply with MiFID requirements if running a MTF or OTF
sch. para. 9b

sch. para. 9b

  • Do not trade against client orders or engage in matched principal trading on your MTF
sch. para. 9d

sch. para. 9d

  • Don't impose extra disclosure rules on issuers when admitting traded securities to your MTF
sch. para. 9e

sch. para. 9e

  • SME growth market exchange must comply with FCA rules and follow dual-admission restrictions
sch. para. 9f

sch. para. 9f

  • Operate an organised trading facility with strict limits
sch. para. 9g

sch. para. 9g

  • Maintain rules and information arrangements for OTF trading of already‐admitted securities
sch. para. 9h

sch. para. 9h

  • Explain why your trading facility is not an MTF, regulated market or systematic internaliser
sch. para. 9i

sch. para. 9i

  • Comply with data reporting rules if your exchange provides data services
sch. para. 9j

sch. para. 9j

  • Implement employee whistleblowing procedures for CSD regulation infringements
sch. para. 9za

sch. para. 9za

  • Use non-discretionary order execution rules and avoid proprietary trading
sch. para. 9zb

sch. para. 9zb

  • Operate a regulated market with fair and orderly trading and proper disclosure
sch. para. 9zd

sch. para. 9zd

  • Operate multilateral system only as regulated market, MTF or OTF
Browse 110 other sections — procedural / definitional / commencement
sch. para. 1

sch. para. 1

sch. para. 12

sch. para. 12

sch. para. 13

sch. para. 13

sch. para. 25

sch. para. 25

sch. para. 35

sch. para. 35

sch. para. 36

sch. para. 36

sch. para. 3d

sch. para. 3d

sch. para. 3e

sch. para. 3e

sch. para. 7a

sch. para. 7a

sch. para. 7d

sch. para. 7d

sch. para. 7f

sch. para. 7f

sch. para. 8

sch. para. 8

sch. para. 9c

sch. para. 9c

sch. para. 9zc

sch. para. 9zc

s.001

Citation

s.002

Commencement

s.002

(1) The composition of the management body of an exchange...

s.002

(1) If an exchange is significant the following requirements apply...

s.003

Interpretation

s.003

High message intraday rate

s.003

(1) The exchange must— (a) have written agreements with all...

s.003

(1) The exchange must be able to—

s.003

Where the exchange permits direct electronic access to a trading...

s.003

The exchange's rules on co-location services must be transparent, fair...

s.003

(1) The exchange's fee structure, for all fees it charges...

s.003

The exchange must require members of and participants in trading...

s.003

(1) Subject to sub-paragraph (1A), the exchange must adopt tick...

s.003

The exchange must synchronise the business clocks it uses to...

s.004

Recognition requirements for investment exchanges

s.004

(1) The exchange must make arrangements for—

s.004

(1) The exchange must make arrangements for the price, volume...

s.004

(1) The exchange must make available to the public, without...

s.005

Recognition requirements for clearing houses which are not central counterparties

s.005

Recognition requirements for central counterparties

s.005

Recognition requirements for central securities depositories

s.006

Method of satisfying recognition requirements

s.007

Dealings and transactions not involving investments

s.007

(1) The exchange must make clear and transparent rules concerning...

s.007

(1) The exchange must make transparent and non-discriminatory rules, based...

s.007

(1) An exchange operating a trading venue which trades commodity...

s.007

(1) This paragraph applies to an exchange operating a trading...

s.007

(1) This paragraph applies to an exchange which provides central...

s.007

(1) The rules of the exchange must permit a user...

s.007

(1) The rules of the exchange must provide that the...

s.007

(1) This paragraph applies for the purposes of paragraph 7E(1)....

s.008

Exchanges and clearing houses which do not enter into market contracts

s.009

Effect of recognition under the Financial Services Act 1986

s.009

(1) An exchange operating a multilateral trading facility or an...

s.009

(1) An exchange must have non-discretionary rules for the execution...

s.009

The rules of the exchange about access to, or membership...

s.009

(1) The rules of the exchange must provide that where...

s.009

(1) An exchange operating ... an SME growth market ......

s.009

(1) An exchange operating an organised trading facility must—

s.009

(1) The rules of the exchange must provide that where...

s.009

(1) An exchange must, when requested to do so, provide...

s.009

An exchange providing data reporting services must comply with—

s.009

(1) The exchange must have in place appropriate procedures for...

s.009

(1) An exchange must have non-discretionary rules for the execution...

s.009

(1) The rules of the exchange must ensure that all—...

s.009

The rules of the exchange about access to, or membership...

s.009

An exchange must only operate a multilateral system as a...

s.010

Revocation of recognition: action taken before commencement

s.011

FCA rules

s.012

The rules of the exchange must provide that, in the...

s.021

(1) The clearing house must make transparent and non-discriminatory rules,...

s.023

The clearing house must maintain a plan that sets out...

s.025

The rules of the clearing house must provide that in...

s.029

The central counterparty must maintain effective arrangements (which may include...

s.029

The central counterparty must maintain a plan that sets out...

s.031

(1) The central counterparty must have in place appropriate procedures...

Read the full Act on legislation.gov.uk (opens in a new tab)

Explore more

Browse legislation

Find other UK business legislation with related guidance.