REC 2.7 Access to facilities
Schedule to the Recognition Requirements Regulations, Paragraph 4(2)(a)
2Without prejudice to the generality of sub-paragraph [4(1)], the [UK RIE] must ensure that - |
access to the [UK RIE's] facilities is subject to criteria designed to protect the orderly functioning of the market and the interests of investors and is in accordance with paragraph 7B; |
Schedule to the Recognition Requirements Regulations, Paragraph 7B
2(1) |
The [UK RIE] must make transparent and non-discriminatory rules, based on objective criteria, governing access to, or membership of, its facilities. |
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(2) |
In particular those rules must specify the obligations for users or members of its facilities arising from - |
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(a) |
the constitution and administration of the [UK RIE]; |
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(b) |
rules relating to transactions on its trading venues4; |
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(c) |
its professional standards for staff of any investment firm or qualifying credit institution5 having access to or membership of a financial market operated by the [UK RIE]; |
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(d) |
conditions established under sub-paragraph (3)(c) for access to or membership of a trading venue4 operated by the [UK RIE] by persons other than investment firms or qualifying credit institutions5; and |
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(e) |
the rules and procedures for clearing and settlement of transactions concluded on a trading venue4 operated by the [UK RIE]. |
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(3) |
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[Note: see paragraph 9ZC below, replacing paragraph 7B(3)]4 |
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(4) |
[deleted]5 |
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| 4 | |||
by the competent authority of another EEA State (including a branch established in the United Kingdom of such a firm or institution) to have direct or remote access to or membership of, any trading venue4 operated by the [UK RIE] on the same terms as a UK firm. |
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(5) |
The [UK RIE] must make arrangements regularly to provide the [FCA]3 with a list of users or members of its facilities. 3 |
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(6) |
This paragraph is without prejudice to the generality of paragraph 4. |
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Schedule to the Recognition Requirements Regulations, Paragraph 7C
2(1) |
This paragraph applies to [a UK RIE] which provides central counterparty, clearing or settlement facilities. |
(2) |
The [UK RIE] must make transparent and non-discriminatory rules based on objective criteria, governing access to those facilities. |
(3) |
[deleted] 5 |
(4) |
The [UK RIE] may refuse access to those facilities on legitimate commercial grounds. |
4Schedule to the Recognition Requirements Regulations, Paragraph 9ZC
[Note: this sub-paragraph is relevant to regulated markets only. See REC 2.16A regarding MTFs or OTFs.]
(1) |
The rules of the [UK RIE] about access to, or membership of, a regulated market operated by it must permit the [UK RIE] to give access to or admit membership to (as the case may be) only - |
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(a) |
an investment firm which has permission under Part 4A of the Act to carry on a regulated activity which is an investment service or activity5; |
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(b) |
a qualifying credit institution that has Part 4A permission to carry on the regulated activity of accepting deposits;5 |
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(c) |
a person who – |
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(i) |
is of sufficient good repute; |
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(ii) |
has a sufficient level of trading ability, competence and experience; |
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(iii) |
where applicable has adequate organisational arrangements; and |
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(iv) |
has sufficient resources for the role it is to perform, taking account of the [UK RIE’s] arrangements under paragraph 4(2)(d). |
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[deleted]3
[deleted]3
In assessing whether access to a UK recognised body's facilities is subject to criteria designed to protect the orderly functioning of the market, or of those facilities, and the interests of investors, the FCA3 may have regard to whether:
3- (1)
the UK recognised body limits access as a member to persons:
- (a)
over whom it can with reasonable certainty enforce its rules contractually;
- (b)
who have sufficient technical competence to use its facilities;
- (c)
whom it is appropriate to admit to membership having regard to the size and sophistication of users of its facilities and the nature of the business effected by means of, or cleared through, its facilities; and
- (d)
(if appropriate) who have adequate financial resources in relation to their exposure to the UK recognised body or its central counterparty; and4
- (a)
- (2)
[deleted]2
2 - (3)
[deleted]4
- (4)
where access is granted to members outside the United Kingdom, there are adequate safeguards against financial crime (see also REC 2.10).
2REC 2.7.3 G does not apply to a UK RIE's arrangements to grant access to investment firms or credit institutions.