526.This section allows the Authority to make a recognition order if it is satisfied that the applicant meets the recognition requirements.  The Authority is not obliged to make a recognition order in this circumstance and subsection (3) allows the Authority to take any information into account, and not just information concerning the recognition requirements, when deciding whether to grant recognition.
527.Subsection (2) requires the Treasury to give their approval under section 307 before the making of a recognition order.  The role of the Treasury under that section concerns cases where there is an issue as to whether the rules and other regulatory provisions of the exchange or clearing house have a significantly adverse, and unjustified, effect on competition.
Commentary on Sections Part Xviii: Recognised Investment Exchanges and Clearing Houses Chapter I: Exemption Section 290: Recognition orders