Where an arrangement referred to in Articles 6 and 7 is made with a third party, the third party shall be one of the following types:
in the case of an investment firm: an investment firm which meets the requirements set out in paragraph 2;
in the case of a central counterparty: a central counterparty which clears the relevant shares or sovereign debt;
in the case of a securities settlement system: a securities settlement system as defined under the Financial Markets and Insolvency (Settlement Finality) Regulations 1999 which settles payments in respect of the relevant shares or sovereign debt;
in the case of a central bank: a central bank that accepts the relevant shares or sovereign debt as collateral or conducts open market or repo transactions in relation to the relevant shares or sovereign debt;
in the case of a national debt management entity: the national debt management entity of the relevant sovereign debt issuer;
any other person who is subject to authorisation or registration requirements in accordance with the Financial Services and Markets Act 2000 and meets the requirements set out in paragraph 2;
a person established in a third country who is authorised or registered, and is subject to supervision by an authority in that third country and who meets the requirements set out in paragraph 2, provided that the third country authority is a party to an appropriate cooperation arrangement concerning exchange of information with the FCA.
For the purposes of points (a), (f) and (g) of paragraph 1, the third party shall meet the following requirements:
participate in the management of borrowing or purchasing of relevant shares or sovereign debt;
provide evidence of such participation;
be able, on request, to provide evidence of its ability to deliver or process the delivery of shares or sovereign debt on the dates it commits to do so to its counterparties including statistical evidence.
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.
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