MAR 5AC.2 Regulatory status of a DSD firm

1Under regulation 3(2) of the DSS Regulations, the following authorised persons and exempt persons are eligible to apply to participate in the FMI sandbox arrangements to carry on one or more FMI activities as a sandbox entrant:

1. (1)

   a UK operator of a trading venue; or

2. (2)

   a CSD in relation to which a recognition order is in force, in accordance with section 285(1)(e) of the Act.

1In accordance with regulation 3(3) of the DSS Regulations, the Bank of England or the FCA may determine that other persons established in the United Kingdom are also permitted to apply to participate in the FMI sandbox arrangements as a sandbox entrant.

1No requirements relating to the operation of a trading venue have been modified by the DSS Regulations. The FCA considers it unlikely that a person only wishing to operate a standalone trading venue and settle transactions using a CSD or a DSD operated by another sandbox entrant would be accepted as a sandbox entrant.

1The DSS Regulations modify the Act so that references to regulated activity in section 20 of the Act are to be treated in relation to a DSD as excluding such regulated activity that the DSD carries on in connection with any of the core DSD functions or ancillary FMI activities for which it has approval under its SAN.