BoE and Treasury are consulting on a set of changes to rules relating to market infrastructure providers.

  • BoE is consulting on proposed rules for recognised clearing houses (RCH) and approved operators. BoE will be the supervisor of central counterparties (CCP) and securities settlement systems. In relation to RCH, BoE proposes to carry forward many of the existing FSA rules, specifically those on reporting on individual appointments and notifying the supervisor before imposing key rule changes. It also plans to introduce new rules to enable BoE to recover charges it incurs from commissioning expert reports, and equivalents of the RCH rules on notification and recovery of charges for operators of systems for dematerialised securities under the Uncertificated Securities Regulations (USR). Treasury will make the necessary changes to the USRs to implement the changes outlined above;
  • Treasury is consulting on changes to the recognition requirements for RCH and recognised investment exchanges (RIE). The first change would add a requirement for UK RCH that provide CCP services to have rules and arrangements to allocate uncovered losses amongst members and other related parties. The second change would require these entities to have recovery plans in place. This consultation has so far been published only informally and is not available on the Treasury website; and
  • BoE is consulting on planned statutory statements of policy in respect of its supervision of financial market infrastructures (FMIs). Its paper looks at how it will use its powers in relation to qualifying parent undertakings of UK RCH and how it will impose penalties under the FSMA and the Banking Act 2009.

The consultations close on 21 March. (Source: BoE Consultation on RCH and Operator Changes and BoE Consultation on FMI Supervision)