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REC 6A.1 Exercise of passport rights by EEA market operator

REC 6A.1.1 G

1Under section 312A of the Act, an EEA market operator may make arrangements in the United Kingdom to facilitate access to, or use of, a regulated market or multilateral trading facility operated by it if:

  1. (1)

    the operator has given its Home State regulator notice of its intention to make such arrangements; and

  2. (2)

    the Home State regulator has given the FCA3 notice of the operator's intention.

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REC 6A.1.2 G

In making these arrangements, the operator has exempt person status as respects any regulated activity, which is carried on as a part of its business of operating the market or facility in question, or in connection with, or for the purposes of that business.

REC 6A.1.3 G

An EEA market operator has exempt person status as respects any regulated activity which is carried on as a part of its business of operating a regulated market or multilateral trading facility if the operator made arrangements in the United Kingdom on or before 31 October 2007 to facilitate access to, or use of, that regulated market or multilateral trading facility.

REC 6A.1.4 G

2In accordance with the RAP regulations, references in section 312A of the Act to specified regulated market and market are to be read as including reference to a specified auction platform and an auction platform as applicable.

REC 6A.2 Removal of passport rights from EEA market operator

REC 6A.2.1 G

1Under section 312B of the Act, the FCA5 may prohibit an EEA market operator from making or, as the case may be, continuing arrangements in the United Kingdom, to facilitate access to, or use of, a regulated market, or multilateral trading facility, operated by the operator if:

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  1. (1)

    the FCA5 has clear and demonstrable grounds for believing that the operator has contravened a relevant requirement, and

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  2. (2)

    the FCA5 has first complied with sections 312B(3) to (9) of the Act.

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REC 6A.2.2 G

A requirement is relevant if it is imposed:

  1. (1)

    by the operator's Home State regulator in the implementation of MiFID or any EU2 legislation made under MiFID;

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  2. (2)

    by provision implementing MiFID, or any EU2 legislation made under it, in the operator's Home State; or

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  3. (3)

    by any directly applicable EU2 regulation made under MiFID.

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REC 6A.2.3 G

The procedure the FCA5 will follow if it is to exercise this prohibition power is set out in sections 313B(3) to (9) of the Act.

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REC 6A.2.4 G

If the FCA5 exercises this prohibition power it must at the earliest opportunity notify the Commission and ESMA4 of the action taken in relation to the operator.

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REC 6A.2.5 G

The operator's exempt person status ceases to apply if the FCA5 exercises this prohibition power.

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REC 6A.2.6 G

The operator's right to make arrangements in the United Kingdom, to facilitate access to, or use of, a regulated market, or multilateral trading facility, operated by the operator may be reinstated (together with its exempt person status) if the FCA5 is satisfied that the contravention which led the FCA5 to exercise its prohibition power has been remedied.

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REC 6A.2.7 G

3In accordance with the RAP regulations, references in section 312B of the Act to regulated market are to be read as including reference to an auction platform and references to MiFID are to be read as including reference to the auction regulation.