The following Financial Services guidance note Produced in partnership with Orrick, Herrington & Sutcliffe (Europe) LLP provides comprehensive and up to date legal information covering:
A body corporate or unincorporated association may apply to:
the Financial Conduct Authority (FCA) for a recognition order declaring it to be a Recognised Investment Exchange (RIE) or
the Bank of England (BoE) for a recognition order declaring it to be a Recognised Clearing House (RCH)
Both functions were previously the responsibility of the FCA's predecessor, the Financial Services Authority (FSA).
The FCA or Bank of England (BoE), as applicable, will assess the application in accordance with the recognition requirements set out in the Financial Services and Markets Act 2000 (Recognition Requirement for Investment Exchanges and Clearing Houses) Regulations 2001, SI 2001/995 (the RRR).
Note that following the introduction of Regulation (EU) 648/2012 on OTC derivatives, central counterparties and trade repositories (EMIR), different recognition requirements apply to RCHs which are central counterparties (CCPs) (and which are subject to EMIR requirements) and those which are not CCPs. Further details of the recognition requirements for RIEs and RCHs (which are not CCPs) are set out below.
The FCA rules which apply to RIEs are contained in the Recognised Investment Exchanges Sourcebook (REC). Since acquiring the responsibility for the regulation of RCHs, the (BoE) has published its own rules in relation to RCHs, and REC no longer applies to RCHs. For further information see the Bank of England's website on Recognised Clearing House requirements.
RIEs and RCHs are
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