REC 1.1 Application

The rules and guidance in this sourcebook apply to recognised bodies and to applicants for recognition as RIEs under Part XVIII of the Act (Recognised Investment Exchanges and Clearing Houses) and (as RAPs) under the RAP regulations7.

The recognition requirements and guidance in REC 2 relate primarily to UK RIEs which are recognised, or applying to be recognised, to operate a regulated market in the United Kingdom.5

While some recognition requirements in REC 2 apply to other trading venues operated by UK RIEs, guidance in respect of those venues is set out in MAR 5 and MAR 5A.5

UK RIEs4 are exempt persons under section 285 of the Act (Exemption for recognised investment exchanges and clearing houses).

UK RIEs4 must satisfy recognition requirements prescribed by the Treasury (in certain cases with the approval of the Secretary of State) in the Recognition Requirements Regulations. UK RIEs must also satisfy the MiFID/MiFIR requirements7.26 RAPs must satisfy the recognition requirements prescribed by the Treasury in the RAP regulations, under the UK auctioning regulations and must also be UK RIEs and so are subject to the MiFID/MiFIR requirements.7 ROIEs4 must satisfy recognition requirements laid down in section 292 of the Act (Overseas investment exchanges and overseas clearing houses).

UK RIEs4 must also comply with the following:5

1. (a)

   notification requirements in, and notification rules made under, sections 293 (Notification requirements) and 295 (Notification: overseas investment exchanges and clearing houses) of the Act; and5

2. (b)

   any rules made under the FCA’s rule-making power in regulation 11 of the Recognition Requirements Regulations.5

The recognition requirements for UK recognised bodies 5are set out, with guidance, in REC 2.6 The RAP recognition requirements (other than requirements under the UK auctioning regulations which are not reproduced in REC) are set out, with guidance, in REC 2A.7

Key relevant MiFID/MiFIR requirements directly applicable to UK recognised bodies are signposted as “Notes”.5

The notification rules for UKrecognised bodies are set out in REC 3 together with guidance on those rules.

Guidance on the FCA's4 approach to the supervision of recognised bodies is given in REC 4.

Guidance for applicants (and potential applicants) for UK recognised body status is given in REC 5.

The recognition requirements, notification rules, and guidance for ROIEs4 and guidance for applicants (and potential applicants) for ROIE4 status are set out in REC 6.

The fees rules for recognised bodies and applicants are set out in 1FEES 1, 2, 3 and 41.