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Recognised Investment Exchange or RIE meaning
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What does Recognised Investment Exchange or RIE mean?
In UK legal practice, a recognised investment exchange (RIE) is a trading venue formally recognised to operate markets for securities and derivatives, so that dealing, admission and reporting on that venue take place within the statutory recognised bodies regime. The term is defined in legislation: Part XVIII of the Financial Services and Markets Act 2000 (FSMA) (notably section 285) and the Financial Services and Markets Act 2000 (Recognition Requirements for Investment Exchanges and Clearing Houses) Regulations 2001 (SI 2001/995), as amended, with further FCA guidance in the REC sourcebook.
An RIE is recognised by FCA recognition order, supervised as a recognised body, and benefits from exempt person status for certain regulated activities. It must meet detailed recognition requirements on governance, financial resources, access and rulebooks, market surveillance and systems, clearing and settlement, and default rules. RIE status underpins operation of a UK regulated market and is often central to prospectus, market abuse, listing/admission and transactional disclosure analysis. Examples include London Stock Exchange plc.
Usage is consistent across England & Wales, Scotland and Northern Ireland. In Ireland, the equivalent concepts are regulated market and recognised stock exchange under MiFID II/Irish law (for example, Euronext Dublin); RIE is not an Irish statutory term.
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View the related Practice Notes about Recognised Investment Exchange or RIE
PRACTICE NOTES
FCA suspensions/removals of financial instruments: UK RIE/MTF/OTF duties, cross-market obligations, related derivatives and notifications under FSMA 2000 Part 18A, REC/MAR and UK MAR
This Practice Note sets out details of the Financial Conduct Authority (FCA) powers found in Part 18A of the Financial Services and Markets Act 2000 (FSMA 2000) and in the Financial Services and Markets Act 2000 (Recognition Requirements for Investment Exchanges and Clearing Houses) Regulations 2001, SI 2001/995, (the Recognition Requirements Regulations) to suspend or remove financial instruments from trading, together with related provisions contained in the FCA Handbook. For information on the EU’s MiFID II framework for suspending or removing financial instruments from trading, see Practice Note: EU MiFID II: Suspension and removal of financial instruments from trading. Background and definitions Part 18A of FSMA 2000 empowers the FCA to suspend or remove financial instruments from trading, whereas the Recognition Requirements Regulations set out the relevant statutory requirements for suspension and removal by a UK recognised investment exchange (RIE) in the United Kingdom. Schedules 2 and 3 to the Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017, SI 2017/701, introduced amendments to FSMA...
21 May
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PRACTICE NOTES
UK Recognised Investment Exchanges: FCA REC Requirements, Authorisation, Notification Duties, Supervision, SM&CR Extension Plans, and CIGA 2020 Financial Services Exemptions
A recognised investment exchange (RIE) is a UK recognised body designated under Part XVIII of the Financial Services and Markets Act 2000 (FSMA 2000), having received a recognition order from the Financial Conduct Authority (FCA). For the general prohibition in FSMA 2000, s 19, an RIE qualifies as an exempt person, so it requires no permission from the FCA or the PRA (Prudential Regulation Authority) under FSMA 2000, Pt 4A to undertake regulated activities as part of its business as an investment exchange, or for, or in relation to, the provision of clearing services in the UK. You can find examples of RIEs on the Financial Services Register, such as: London Stock Exchange London Metal Exchange Limited ICE Futures Europe FCA Handbook requirements Rules for RIEs sit in the Recognised Investment Exchanges (REC) specialist sourcebook of the FCA Handbook. These REC provisions apply to UK RIEs...
21 May
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PRACTICE NOTES
Regulation, perimeter, authorisation and operational requirements for UK trading venues (RMs, MTFs and OTFs), including the RIE regime, under FSMA, UK MiFIR and the FCA Handbook
This Practice Note reviews the statutory and regulatory framework for UK trading venues, covering the recognised investment exchange (RIE) regime and pertinent elements of Assimilated Regulation (EU) 600/2014 (UK MiFIR) plus the Financial Conduct Authority (FCA) Handbook. In the UK, oversight of regulated markets (RMs) operates via the RIE regime, first set up under the Financial Services Act 1986 (FSA 1986) and subsequently revised by the Financial Services and Markets Act 2000 (FSMA 2000). The recognition framework and duties for investment exchanges appear in FSMA 2000, Part XVIII, and in the Financial Services and Markets Act 2000 (Recognition Requirements for Investment Exchanges and Clearing Houses) Regulations 2001, SI 2001/995, as amended (the Recognition Requirements Regulations). For further detail on the RIE regime, see Practice Note: Recognised investment exchanges. Definition of a UK trading venue Under UK MiFIR, a ‘UK trading venue’ means: a UK regulated market (RM) a UK multilateral trading facility (MTF), or a UK organised trading facility (OTF) ...
21 May
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