Commentary Recognised investment exchanges and clearing houses
346.Part 18 of FSMA sets out the regime under which “recognised clearing houses” and “recognised investment exchanges” (together “recognised bodies”) are regulated. A person specified as a recognised body is exempt, for certain purposes, from the general prohibition in section 19 of FSMA from carrying on regulated activities (section 285 (exemption for recognised investment exchanges and clearing houses)).
347.Under the new arrangements, the Bank is to be responsible for the regulation of recognised clearing houses and the FCA is to be responsible for the regulation of recognised investment exchanges. The Bank’s financial stability objective (as amended by section 2) will apply to its functions under Part 18.