Prudential Regulation Authority Rulebook

3.1

The CRR defines the term ‘recognised exchange’. This term is used in: the part of the CRR definitions of ‘repurchase agreement’ and ‘repurchase agreement’; the criteria for determining own funds requirements for investment firms; and in determining aspects of collateral eligibility and collateral volatility adjustments. To qualify as a recognised exchange under the CRR, an exchange must, among other things, meet the definition of a ‘regulated market’ set out in Directive 2014/65/EU (the Markets in Financial Instruments Directive (MIFID II)). The MIFID II definition of a regulated market requires authorisation and functioning of that market in accordance with MIFID II.  

3.2

Until such time as the ESMA implementing technical standards specifying the list of recognised exchanges are adopted by the European Commission, the PRA considers the following to qualify as recognised exchanges under the CRR: 

• ICE Futures Europe; 
• BATS Europe Regulated Market;
• ICAP Securities and Derivatives Exchange — Main Board;
• NYSE Euronext London; 
• London Stock Exchange — Regulated Market;
• The London International Financial Futures and Options Exchange (LIFFE);
• London Metal Exchange; and
• any other exchange that has been authorised by another EEA competent authority and has been found by that authority to meet the CRR definition of recognised exchange set out in CRR Article 4(1)(72). 

(CRR Articles 4(1)(72), 4(1)(82), 96(1)(a), 197(4) and (8), 198(1) and 224)