MIR 2.5.21

In assessing a Recognised Body’s systems and controls for the effecting and monitoring of transactions, and for the operation of settlement arrangements, the Regulator may have regard to the totality of the arrangements and processes through which the Recognised Body’s transactions are effected, cleared and settled, including:

(a) a Recognised Body’s arrangements under which orders are received and matched, its arrangements for trade and transaction reporting, and (if relevant) its arrangements with another Person under which any rights or liabilities arising from transactions are discharged including arrangements for transmission to a settlement system or Recognised Clearing House;
(b) (if relevant), a Recognised Body’s arrangements under which instructions relating to a transaction to be cleared by another person by means of a Clearing Service are entered into its systems by the relevant person providing the Clearing Service and transmitted to the Recognised Body; and
(c) the arrangements made by the Recognised Body for monitoring and reviewing the operation of these systems and controls.