REC 4.2B Exercise of passport rights by a UK RIE

Under section 312C of the Act, if a UK RIE wishes to make arrangements in an EEA State other than the UK to facilitate access to or use of a regulated market,multilateral trading facility, organised trading facility or auction platform operated by it, it must give the FCA written notice of its intention to do so. The notice must:

1. (1)

   describe the arrangements; and

2. (2)

   identify the EEA State in which the UK RIE intends to make them.

[Note: MiFID RTS 3 and MiFID ITS 4, Annex IV provide for the format for notification by the operator of an MTF or OTF to its Home State competent authority of any arrangements to facilitate access to and trading on the trading venue by remote users, members or participants within the territory of another EEA State]

The FCA must, within one month of receiving the UK RIE's notice, send a copy of it to the Host State regulator.

The UK RIE may not make the arrangements until the FCA has sent a copy of the notice to the Host State regulator.

The requirements that a UK RIE must give the FCA written notice and the UK RIE may not make the arrangements until the FCA has sent a copy of it to the Host State regulator do not apply to arrangements made by a UK RIE on or before 31 October 2007.