1.
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A designated investment exchange is an exchange appearing in the list of such exchanges in the Glossary.
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Benefits of designation
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2.
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Under certain rules, firms may treat transactions effected on a designated investment exchange in the same way as transactions on RIEs (for example, see COB 5 Annex 1 ECASS 2 and COB 7.11).
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Criteria for inclusion in the list of designated investment exchanges
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3.
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Before adding an investment exchange to the list of designated investment exchanges in the Handbook, the FSA will comply with all the requirements imposed by the Act in relation to the exercise of its rule-making powers. This will include consulting on the proposed amendment to the list.
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4.
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In considering compatibility of the proposed addition with the regulatory objectives, the FSA will determine whether the investment exchange provides an appropriate degree of protection for consumers having regard in particular to:
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(1)
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the relevant law and practice, including the regulatory framework in which the investment exchange operates, in the country or territory in which the investment exchange's head office is situated and any other relevant country or territory; and
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(2)
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the rules and practices of the investment exchange.
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5.
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Only investment exchanges which do not carry on a regulated activity in the United Kingdom and are not regulated markets may be added to the list. This is because an investment exchange carrying on a regulated activity in the United Kingdom will need to apply for recognition as an RIE, or authorisation, and because a regulated market is usually treated in the same way as an RIE in the rules.
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Applications to be added to the list of designated investment exchanges
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6.
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An application to be added to the list should be in writing and delivered to the FSA by:
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(1)
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post to:
The Financial Services Authority
25 The North Colonnade
Canary Wharf
London
E14 5HS; or
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(2)
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leaving the application at that address.
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7.
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In support of the application, an investment exchange should provide information on the questions set out in the table below.
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81
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An application will not be considered by the FSA until the application fee has been paid. See GEN 2 Annex 21
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