Securities and Futures (Clearing Facilities of Approved Exchanges or Recognised Market Operators) (Exemption) Regulations 2023

every transaction that is to be cleared or settled using the clearing facility —

is executed on an organised market that is established or operated by the approved exchange or recognised market operator, as the case may be; and

is not routed by the approved exchange or recognised market operator (as the case may be) to any of the following for clearance or settlement:

an approved clearing house;

a recognised clearing house; (C)a person (other than the approved exchange or recognised market operator mentioned in paragraph (1), as the case may be) who operates a clearing facility; and

every transaction that is to be cleared or settled using the clearing facility is only cleared or settled in either or both of the following ways:

information relating to the terms of the transaction is verified by the clearing facility with a view to confirming the transaction;

the obligations of parties under the transaction are calculated, whether or not such calculations include multilateral netting arrangements.

is not executed on an organised market established or operated by the approved exchange or recognised market operator mentioned in paragraph (1), as the case may be;

is routed by the approved exchange or recognised market operator (as the case may be) to any of the following for clearance or settlement:

an approved clearing house;

a recognised clearing house; (iii)a person (other than the approved exchange or recognised market operator mentioned in paragraph (1), as the case may be) who operates a clearing facility; or

is not cleared or settled in the manner specified in paragraph (2)(b).

if the exempt person had established the clearing facility before 7 September 2023 — notify the Authority in writing of this fact and its reliance on the exemption mentioned in that provision by 7 October 2023; or

if the exempt person establishes the clearing facility on or after 7 September 2023 — notify the Authority in writing of the exempt person’s establishment of the clearing facility and its reliance on the exemption mentioned in that provision, within 14 days after the date on which the clearing facility is established.

if the exempt person had commenced operation of the clearing facility before 7 September 2023 — notify the Authority in writing of this fact and its reliance on the exemption under regulation 2(1) by 7 October 2023; or

if the exempt person commences the operation of the clearing facility on or after 7 September 2023 — notify the Authority in writing of the exempt person’s commencement of the operation of the clearing facility and its reliance on the exemption under regulation 2(1), within 14 days after the date of the commencement.