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Home > Financial Stability > Recognised Clearing House requirements

Recognised Clearing House requirements

Recognised clearing houses (RCHs) are regulated under Part 18 of the Financial Services and Markets Act 2000 (FSMA) and are subject to the FSMA 2000 (Recognition Requirements) Regulations 2001.
With the introduction of EMIR, (the European Market Infrastructure Regulation), different recognition requirements apply to RCHs which are Central counterparties (CCPs) and those which are not CCPs. For RCHs which are CCPs, the recognition requirements require compliance with EMIR and its technical standards as well as certain additional domestic requirements. RCHs which are CCPs have a transitional period to apply under the EMIR provisions.

RCHs which are not CCPs continue to be assessed against domestic requirements and do not need to re-apply. For these RCHs (not authorised under EMIR), the Bank will be guided by the international CPSS-IOSCO Principles for financial market infrastructure in interpreting the recognition requirements.  The Bank has also retained some existing FSA guidance material in relation to financial resources requirements.
All RCHs are also subject to rules made by the Bank, these can be found below. 
The Bank is obliged to produce material explaining how it will use certain of its powers, these are available below.
The standards of assessment that the Bank will apply, at a minimum, as part of its supervisory approach to implement ESMA's Guidelines and Recommendations on CCP interoperability arrangements are included below.