The Recognised Auction Platforms Regulations 2011
| Jurisdiction | UK Non-devolved |
| Citation | SI 2011/2699 |
| Year | 2011 |
2011 No. 2699
Financial Services And Markets
The Recognised Auction Platforms Regulations 2011
Made 10th November 2011
Laid before Parliament 11th November 2011
The Treasury are a government department designated1for the purposes of section 2(2) of the European Communities Act 19722in relation to measures relating to the operation of regulated markets and clearing or settlement systems and in relation to insider dealing and market manipulation.
The Treasury, in exercise of the powers conferred on them by section 2(2) of the European Communities Act 1972, make the following Regulations.
PART 1
General
Citation, commencement and interpretation
1.—(1) These Regulations may be cited as the Recognised Auction Platforms Regulations 2011.
(2) These Regulations come into force—
(a)
(a) for the purpose of regulations 1 to 5, 7 to 9 and 11 to 24 of, and Schedules 2 and 3 to, the Regulations, on 12th December 2011;
(b)
(b) for the purpose of regulations 6 and 10 of, and Schedule 1 to, the Regulations, on 18th June 2012.
(3) In these Regulations—
“the Act” means the Financial Services and Markets Act 20003;
“auction platform” means a platform on which auctions of emissions allowances are held in accordance with the emission allowance auctioning regulation;
“auction recognition requirements” mean the requirements set out in Part 5 of these Regulations together with any requirements contained in the emission allowance auctioning regulation, or in any directly applicable Community regulation made under the market in financial instruments directive.
“bid” means an offer in an auction of emission allowances to acquire a given volume of allowances at a specified price;
“emission allowance” means an allowance to emit one tonne of carbon dioxide equivalent during a specified period, which is valid for the purposes of meeting the requirements of the emission allowance trading directive, and which is transferable in accordance with the provisions of that directive;
“emission allowance trading directive” means Directive 2003/87/ECof the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowances trading within the Community4;
“emission allowance auctioning regulation” means Commission Regulation (EU) No 1031/2010 of 12 November 2010 on the timing, administration and other aspects of auctioning of greenhouse gas emission allowances pursuant to the emission allowance trading directive5;
“recognised investment exchange” means an investment exchange other than an overseas investment exchange in relation to which a recognition order has been made under section 290(1)(a);
“recognised auction platform” means a recognised investment exchange in relation to which a recognition order is in force;
“recognition order” means an order made under regulation 2;
(4) In these Regulations—
(a)
(a) unless the contrary intention appears, expressions which are also used in the Financial Services and Markets Act 2000 have the same meaning as in that Act;
(b)
(b) expressions which are also used in the emission allowance trading directive or the emission allowance auctioning regulation have the same meaning as in that directive or regulation; and
(c)
(c) reference to a numbered section, unless otherwise stated, is a reference to a section in the Act.
PART 2
Recognised Auction Platforms
Recognition orders
2.—(1) A recognised investment exchange may apply to the Authority for an order declaring it to be a recognised auction platform for the purposes of these Regulations.
(2) The application must be made in such manner as the Authority may direct and must, to the extent required by the Authority, be accompanied by—
(a)
(a) a copy of the rules for the auction platform;
(b)
(b) a copy of any guidance for the auction platform issued by the applicant;
(c)
(c) particulars of the way in which the exchange satisfies the auction recognition requirements; and
(d)
(d) such other information as the Authority may reasonably require for the purpose of determining the application.
(3) If it appears to the Authority that the applicant satisfies the auction recognition requirements, the Authority may make a recognition order declaring the applicant to be a recognised auction platform.
(4) At any time after receiving an application and before determining it, the Authority may require the applicant to provide such further information as it reasonably considers necessary to enable it to determine the application.
(5) Information which the Authority requires in connection with an application must be provided in such form, or verified in such manner, as the Authority may direct.
(6) Different directions may be given, or requirements imposed, by the Authority with respect to different applications.
(7) In considering an application, the Authority may have regard to any information which it considers relevant to the application.
(8) The application must be determined by the Authority before the end of the period of six months beginning with the date on which it receives the completed application.
(9) A recognition order must specify a date on which it is to come into effect.
Authority’s power to give directions
3.—(1) This regulation applies if it appears to the Authority that a recognised auction platform—
(a)
(a) has failed, or is likely to fail, to satisfy the auction recognition requirements; or
(b)
(b) has failed to comply with any other obligation imposed on it by or under these Regulations.
(2) The Authority may direct the body to take specified steps for the purpose of securing the body’s compliance with—
(a)
(a) the auction recognition requirements; or
(b)
(b) any obligation of the kind in question.
(3) Those steps may include—
(a)
(a) the granting to the Authority of access to the premises of the auction platform for the purpose of inspecting—
(i) those premises; or
(ii) any documents on the premises which appear to the Authority to be relevant for the purpose mentioned in paragraph (2);
(b)
(b) the suspension of the carrying on of any regulated activity by the auction platform for the period specified in the direction.
(4) A direction under this regulation is enforceable, on the application of the Authority, by an injunction or, in Scotland, by an order for specific performance under section 45 of the Court of Session Act 19886.
(5) The fact that a rule made by a recognised auction platform has been altered in response to a direction given by the Authority does not prevent it from being subsequently altered or revoked by the auction platform.
Revoking recognition
4.—(1) A recognition order may be revoked by an order made by the Authority at the request, or with the consent, of the recognised auction platform.
(2) If it appears to the Authority that a recognised auction platform—
(a)
(a) is failing, or has failed, to satisfy the auction recognition requirements;
(b)
(b) has not carried on the business of an auction platform during the period of twelve months beginning with the day on which the recognition order declaring it to be a recognised auction platform took effect in relation to it;
(c)
(c) has not carried on the business of an auction platform at any time during the period of six months ending with the relevant day; or
(d)
(d) has failed, or is likely to fail, to comply with any obligation imposed on it by these Regulations, or by the emission allowance auctioning regulation,
it may make an order revoking the recognition order which declared that body to be a recognised auction platform, even though that body does not wish the order to be made.
(3) Where the Authority makes a revocation order under section 297 in relation to a recognised investment exchange which is also a recognised auction platform, the Authority shall also make an order revoking the recognition order which declared that body to be a recognised auction platform.
(4) The “relevant day”, for the purposes of paragraph (2)(c), is the day on which the power to make an order under paragraph (1) is exercised.
(5) An order under this regulation (“a revocation order”) must specify the date on which it is to take effect.
(6) In the case of a revocation order made under paragraph (2) or (3), the specified date must not be earlier than the end of the period of three months beginning with the day on which the order is made.
(7) An order under paragraph (1) or (2) does not affect that body’s recognition as a recognised investment exchange.
Procedure
5.—(1) Before refusing to make a recognition order, giving a direction under regulation 3 or making a revocation order under regulation 4, the Authority must—
(a)
(a) give written notice of its intention to do so to the body which would be affected by the proposed refusal, direction or revocation order;
(b)
(b) take such steps as it considers reasonably practicable to bring the notice to the attention of members (if any) of that body; and
(c)
(c) publish the notice in such manner as it thinks appropriate for bringing it to the attention of other persons who are, in its opinion, likely to be affected.
(2) A notice under paragraph (1) must—
(a)
(a) state why the Authority intends to refuse to make the recognition order, to give the direction or to make the revocation order; and
(b)
(b) draw attention to the right to make representations conferred by paragraph (3).
(3) Before the end of the period for making representations—
(a)
(a) the body which would be affected by the proposed refusal, direction or revocation order,
(b)
(b) any member of that body, and
(c)
(c) any other person who is likely to be affected by the proposed refusal, direction or revocation order,
may make representations to the Authority.
(4) The period for making representations is—
(a)
(a) two months beginning—
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