STSM123030 - Financial markets: trading venues: recognised investment exchange

Recognised Investment Exchanges

Under Part XVIII (Recognised Investment Exchanges, Clearing Houses and CSDs)  of the Financial Services and Markets Act 2000 (FSMA) the Financial Conduct Authority (FCA) ‘recognises’ a number of investment exchanges (RIEs). Section 285 of FSMA defines a RIE as being an investment exchange in relation to which a recognition order is in force, and section 285A (1) defines the FCA as the appropriate regulator for RIEs.

To be recognised, a RIE must comply with the requirements in the Financial Services and Markets Act 2000 (Recognition Requirement for Investment Exchanges and Clearing Houses) Regulations 2001 (SI 2001/995).

RIEs are exempt from the need to be authorised to carry on regulated activities in the United Kingdom. (See STSM123080 for details of regulated activities).

RIEs, in their capacity as market operators, may operate both regulated markets and multilateral trading facilities (see STSM123040 and STSM123050).

UK RIEs are published on the FCA website. The current UK RIEs (as of 10 May 2024) are:

  • ICE Futures Europe
  • London Stock Exchange plc
  • The London Metal Exchange Limited
  • Aquis Stock Exchange Limited
  • Cboe Europe Limited

Recognised Overseas Investment Exchanges

The FCA has also recognised and supervises a number of overseas investment exchanges (ROIEs).  Being a ROIE facilitates the participation of overseas investment exchanges in UK markets. Before making a recognition order, the FCA will need to be satisfied that the recognition requirements in section 293(3) of FSMA (Overseas investment exchanges) have been met.

A list of ROIEs is available from the FCA website.

Designated Investment Exchanges

Investment exchanges which do not carry on regulated activities in the United Kingdom and are not regulated markets may apply to the FCA to be designated. Before designating an exchange, the FCA will consider whether the exchange provides an adequate degree of protection for consumers and undertake a public consultation.

Designation allows firms to treat transactions undertaken on a Designated Investment Exchange as if they had been undertaken on a RIE.  The FCA publishes a list of Designated Investment Exchanges on its website.