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Home > Financial Stability > Settlement Finality Directive applications
 

Settlement Finality Directive applications

The Financial Markets and Insolvency (Settlement Finality) Regulations 1999 (as amended), ('Settlement Finality Regulations') which implement the EU Settlement Finality Directive in the United Kingdom allow payment and settlement systems to apply for certain protections against the operation of normal insolvency law insofar as it applies to transfer orders entered into the system. By disapplying insolvency law, the Settlement Finality Regulations protect the finality and irrevocability of the transfer orders, and the Settlement Finality Regulations help to ensure the enforceability of collateral security.

In order to receive these protections, systems must meet the criteria set out in the Settlement Finality Regulations and be designated by the relevant authority.

The Bank is the relevant authority for all entities other than recognised investment exchanges. The Bank analyses applications for designation from such systems and decides whether to designate a system on the basis of whether it meets the requirements set out in the Settlement Finality Regulations. 

There is no standard application form for application for designation. An application should be made in accordance with any direction the Bank may make under regulation 3 of the Settlement Finality Regulations.

Systems wishing to apply for designation should contact the Bank.

The Bank can be contacted as follows:

Email

or by post:

FMI Information
Bank of England
FMI Supervision Directorate, MG-SE-5
20 Moorgate
London, EC2R
6DA
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