REC 2.1 Introduction
- (1)
This chapter contains the recognition requirements for UK RIEs (other than RAPs)7 6and sets out guidance on those requirements. 6
5 - (2)
This chapter also contains “Notes” with informative text in relation to MiFID/MiFIR requirements applicable directly to UK RIEs operating trading venues.5
- (3)
This chapter directs UK RIEs to certain recognition requirements and guidance on those requirements found in other parts of the Handbook.5
These recognition requirements must be satisfied by applicants for UK RIE4 status before recognition is granted and by all UK RIEs4 at all times while they are recognised. In addition the MiFID implementing requirements must be satisfied by applicants for UK RIE status before recognition is granted and by all UK RIEs at all times while they are recognised. 2The same standards apply both on initial recognition and throughout the period recognised body status is held. The term UK RIE4 in the guidance should be taken, therefore, to refer also to an applicant when appropriate.
444- (1)
The paragraphs in the Schedule to the Recognition Requirements Regulations are grouped in this sourcebook in sections which give guidance on the same subject for UK RIEs.4
4 - (2)
The table in REC 2.1.4 G indicates in which section each of those paragraphs (and the associated guidance) can be found.
2
Location of recognition requirements and guidance
Recognition Requirements Regulations |
Subject |
|
Regulation 6 |
Method of satisfying recognition requirements |
2.2 |
Part I of the Schedule |
UK RIE recognition requirements |
|
Paragraph 1 |
Financial resources |
2.3 |
Paragraph 2 |
Suitability |
2.4 |
5Paragraphs 2A and 2B |
Management Body |
2.4A |
Paragraphs 3, 3A, 3B, 3C, 3D, 3E, 3G and 3H5 |
Systems and controls, market making agreements, halting trading, direct electronic access, co-location services, fee structures, algorithmic trading, tick size regimes, synchronisation of business clocks5 |
2.5 |
Paragraphs 4(1), 4(2)(aa) and 4C5 22 |
General safeguards for investors and publication of data regarding execution of transactions5 |
2.6 |
Paragraph 4(2)(a) |
Access to facilities |
2.7 |
Paragraph 4(2)(c) |
Availability of relevant information |
2.12 |
Paragraph 4(2)(d) |
Settlement |
2.8 |
Paragraph 4(2)(e) |
Transaction recording |
2.9 |
2Paragraph 4(2)(ea) |
Conflicts |
2.5 |
Paragraph 4(2)(f) and 4(2)(fa)5 |
Financial crime and market abuse |
2.10 |
Paragraph 4(2)(g) |
Custody |
2.11 |
Paragraph 4(3) |
Definition of relevant information |
2.12 |
| 2 | ||
| 2 | ||
Paragraph 6 |
Promotion and maintenance of standards |
2.13 |
Paragraph 7 |
Rules and consultation |
2.14 |
Paragraphs 7A and 9ZB (regulated markets only)5 2 |
Admission of financial instruments to trading |
2.12 |
Paragraphs 7B, 7C and 9ZC (regulated markets only)5 2 |
Access to facilities |
2.7 |
5Paragraphs 7BA & 7BB |
Position management and position reporting re commodity derivatives |
2.7A |
2Paragraph 7D |
Settlement and clearing facilitation services5 |
2.8 |
Paragraphs 7E and 7F5 2 |
Suspension and removal of financial instruments from trading |
2.6 |
Paragraph 8 |
Discipline |
2.15 |
Paragraph 9 |
Complaints |
2.16 |
Paragraphs 9A, 9B, 9C, 9D, 9E, 9F, 9G, 9H and 9ZD5 2 |
Operation of a multilateral trading facility or an organised trading facility5 |
2.16A/MAR 5 and MAR 5A |
5Paragraph 9ZA (regulated markets only) |
Order execution |
2.6 |
5Paragraph 9K |
Provision of data reporting services |
2.16B/ MAR 9 |
Part II of the Schedule |
UK RIE default rules in respect of market contracts |
2.174 |