2. Exemption

Subject to paragraph (2), an approved exchange or a recognised market operator which establishes or operates a clearing facility is exempt from section 49(1) of the Act.

The exemption mentioned in paragraph (1) applies if —

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.

The exemption mentioned in paragraph (1) ceases if any transaction that is cleared or settled using the clearing facility —

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).

Subject to paragraph (2), an approved exchange or a recognised market operator which establishes or operates a clearing facility is exempt from section 49(1) of the Act.

The exemption mentioned in paragraph (1) applies if —

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.

The exemption mentioned in paragraph (1) ceases if any transaction that is cleared or settled using the clearing facility —

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).