Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

MAR 7A.5 Requirements when acting as a general clearing member

Application

MAR 7A.5.1RRP

1This section applies to a firm which provides the service of acting as a general clearing member.

Requirements

MAR 7A.5.2RRP

A firm must:

  1. (1)

    have clear criteria as to the suitability requirements of persons to whom clearing services will be provided;

  2. (2)

    apply those criteria;

  3. (3)

    impose requirements on the persons to whom clearing services are being provided to reduce risks to the firm and to the market; and

  4. (4)

    have a binding written agreement with any person to whom it is providing clearing services, detailing the essential rights and obligations of both parties arising from the provision of the services.

[Note: article 17(6) of MiFID and MiFID RTS 6 specifying the organisational requirements of investment firms acting as general clearing members]