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REC 2.1 Introduction

30/04/2021G
  1. (1)

    This chapter contains the recognition requirements for UK RIEs (other than RAPs) and sets out guidance on those requirements.

  2. (2)

    This chapter also contains “Notes” with informative text in relation to MiFID/MiFIR requirements applicable directly to UK RIEs operating trading venues.

  3. (3)

    This chapter directs UK RIEs to certain recognition requirements and guidance on those requirements found in other parts of the Handbook.

30/04/2021G

Guidance on the RAP recognition requirements which apply to RAPs is set out in REC 2A (Recognised Auction Platforms). Guidance on the recognition requirements for ROIEs is set out in REC 6 (Overseas Investment Exchanges).

01/04/2013G

These recognition requirements must be satisfied by applicants for UK RIE status before recognition is granted and by all UK RIEs at all times while they are recognised. In addition the MiFID implementing requirements must be satisfied by applicants for UK RIE status before recognition is granted and by all UK RIEs at all times while they are recognised. The same standards apply both on initial recognition and throughout the period recognised body status is held. The term UK RIE in the guidance should be taken, therefore, to refer also to an applicant when appropriate.

01/04/2013G
  1. (1)

    The paragraphs in the Schedule to the Recognition Requirements Regulations are grouped in this sourcebook in sections which give guidance on the same subject for UK RIEs.

  2. (2)

    The table in REC 2.1.4 G indicates in which section each of those paragraphs (and the associated guidance) can be found.

Location of recognition requirements and guidance

03/01/2018G

Recognition Requirements Regulations

Subject

Section in REC 2/other parts of the Handbook

Regulation 6

Method of satisfying recognition requirements

2.2

Part I of the Schedule

UK RIE recognition requirements

Paragraph 1

Financial resources

2.3

Paragraph 2

Suitability

2.4

Paragraphs 2A and 2B

Management Body

2.4A

Paragraphs 3, 3A, 3B, 3C, 3D, 3E, 3G and 3H

Systems and controls, market making agreements, halting trading, direct electronic access, co-location services, fee structures, algorithmic trading, tick size regimes, synchronisation of business clocks

2.5

Paragraphs 4(1), 4(2)(aa) and 4C

General safeguards for investors and publication of data regarding execution of transactions

2.6

Paragraph 4(2)(a)

Access to facilities

2.7

Paragraph 4(2)(c)

Availability of relevant information

2.12

Paragraph 4(2)(d)

Settlement

2.8

Paragraph 4(2)(e)

Transaction recording

2.9

Paragraph 4(2)(ea)

Conflicts

2.5

Paragraph 4(2)(f) and 4(2)(fa)

Financial crime and market abuse

2.10

Paragraph 4(2)(g)

Custody

2.11

Paragraph 4(3)

Definition of relevant information

2.12

Paragraph 6

Promotion and maintenance of standards

2.13

Paragraph 7

Rules and consultation

2.14

Paragraphs 7A and 9ZB (regulated markets only)

Admission of financial instruments to trading

2.12

Paragraphs 7B, 7C and 9ZC (regulated markets only)

Access to facilities

2.7

Paragraphs 7BA & 7BB

Position management and position reporting re commodity derivatives

2.7A

Paragraph 7D

Settlement and clearing facilitation services

2.8

Paragraphs 7E and 7F

Suspension and removal of financial instruments from trading

2.6

Paragraph 8

Discipline

2.15

Paragraph 9

Complaints

2.16

Paragraphs 9A, 9B, 9C, 9D, 9E, 9F, 9G, 9H and 9ZD

Operation of a multilateral trading facility or an organised trading facility

2.16A/MAR 5 and MAR 5A

Paragraph 9ZA (regulated markets only)

Order execution

2.6

Paragraph 9K

Provision of data reporting services

2.16B/ MAR 9

Part II of the Schedule

UK RIE default rules in respect of market contracts

2.17