Section 286

The Treasury may make regulations setting out the requirements— which must be satisfied by an investment exchange , clearing house or central securities depository if it is to qualify as a body in respect of which the appropriate regulator may make a recognition order under this Part; and which, if a recognition order is made, it must continue to satisfy if it is to remain a recognised body. But if regulations contain provision as to the default rules of an investment exchange , clearing house or central securities depository, or as to proceedings taken under such rules by such a body, they require the approval of the Secretary of State. “Default rules” means rules of an investment exchange , clearing house or central securities depository which provide for the taking of action in the event of a person’s appearing to be unable, or likely to become unable, to meet his obligations in respect of one or more market contracts connected with the exchange , clearing house or central securities depository. “Market contract” means— a contract to which Part VII of the Companies Act 1989 applies as a result of section 155 of that Act or a contract to which Part V of the Companies (No. 2)(Northern Ireland) Order 1990 applies as a result of Article 80 of that Order; and such other kind of contract as may be prescribed. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Regulations under subsection (1) may confer power on the appropriate regulator to make rules for the purposes of the regulations or of any specified provision made by the regulations. Requirements resulting from this section are referred to in this Part as “recognition requirements”. In the case of an investment exchange, requirements resulting from this section are in addition to requirements which must be satisfied by the exchange as a result of section 290(1A) before the FCA may make a recognition order declaring the exchange to be a recognised investment exchange.

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Source: legislation.gov.uk · retrieved 2026-09-04