Regulation 34 Acting as a general clearing member

United Kingdom

(1)

A member of, or participant in, a regulated market or multilateral trading facility that acts as a general clearing member for other persons (“M”) must comply with the requirements set out in paragraph (2) if—

(a)

F1M is established in the United Kingdom;

F2(b)

M falls within paragraph (1A) of regulation 30; and

(c)

M does not have a Part 4A permission F3to carry on a regulated activity which is any of the investment services and activities.

(2)

M must have in place effective systems and controls to ensure—

(a)

M's clearing services are only provided to persons who —

(i)

are suitable recipients of those services; and

(ii)

meet clear criteria applied by those systems and controls regarding which persons are suitable to receive clearing services; and

(b)

requirements are imposed on the persons to whom clearing services are being provided to reduce risks to M and to the market.

(3)

M must have a binding written agreement with any person to whom they are providing clearing services detailing the rights and obligations of both parties arising from the provision of the service.

(4)

In this regulation “clearing services” means the services provided by M in the course of acting as a general clearing member for other persons.

Annotations

Textual amendments

F1: Words in reg. 34(1)(a) substituted (31.12.2020) by The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 11(a) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)
F2: Reg. 34(1)(b) substituted (31.12.2020) by The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 11(b) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)
F3: Words in reg. 34(1)(c) substituted (31.12.2020) by The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 11(c) (with savings in S.I. 2019/680, reg. 11); 2020 c. 1, Sch. 5 para. 1(1)

Notes on the whole SI

Textual amendments

F1: Regulations revoked (14.12.2023 for the revocation of reg. 51) by Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 1 Pt. 2 (with s. 1(4)); S.I. 2023/1382, reg. 2(c)(xviii)