Paragraph 25
An Operator’s rules and practices—
must bind system-members and participating issuers—
so as to ensure the efficient processing of transfers of title to uncertificated units of a security in response to Operator-instructions; and
as to the action to be taken where transfer of title in response to a system-member instruction or an Operator-instruction cannot be effected;
must make provision as to the manner in which a system-member or the relevant participating issuer may change the form in which that system-member holds units of a participating security (other than a wholly dematerialised security);
must make provision for a participating issuer to cease to participate in respect of a participating security so as—
to minimise so far as practicable any disruption to system-members in respect of their ability to transfer the relevant security; and
to provide the participating issuer with any relevant information held by the Operator relating to the uncertificated units of the relevant security held by system-members;
must make provision for the orderly termination of participation by system-members and system-participants whose participation is disruptive to other system-members or system-participants or to participating issuers;
must make provision—
as to which of the Operator’s records are to constitute an Operator register of securities in relation to a participating security, or a participating security of a particular kind; and
as to the times at which, and the manner in which, a participating issuer may inspect an Operator register of securities in accordance with paragraph 12;
if they make provision for the designation of a subsidiary undertaking as a relevant nominee, must require that the relevant nominee maintain adequate records of—
the names of the persons who have an interest in the securities it holds; and
the nature and extent of their interests; and
must make provision for the authentication by the Operator of any written notification given under regulation 25(3) or 32(2)(c).