MAR 9.2C Financial resources requirements for consolidated tape providers

In assessing whether a CTP has at all times sufficient financial resources for the proper performance of its obligations as a CTP, the FCA may have regard to:

1. (1)

   the operational and other risks to which the CTP is exposed;

2. (2)

   the amount and composition of the CTP’s capital, liquid financial assets and other financial resources (such as insurance policies and guarantees, where appropriate);

3. (3)

   the financial benefits, liabilities, risks and exposures arising from the CTP’s connection with any person, including but not limited to, its connection with:

   1. (a)

      any undertaking in the same group as the CTP;

   2. (b)

      any other person with a significant shareholding or stake in the CTP;

   3. (c)

      any other person with whom the CTP has made a significant investment, whether in the form of equity, debt, or by means of any guarantee or other form of commitment; and

   4. (d)

      any person with whom the CTP has a significant contractual relationship;

4. (4)

   the extent to which the CTP’s ability to fulfil its obligations as a CTP under this chapter may be impacted by any regulated activities and other unregulated activities it undertakes; and

5. (5)

   the extent to which, after allowing for the financial resources necessary to cover operational and other risks to which the CTP is exposed, the CTP’s financial resources are sufficient and sufficiently liquid to ensure that it would be able to complete an orderly closure or transfer of the services it provides as a CTP without being prevented from doing so by insolvency or lack of available funds.

The obligation set out in MAR 9.2C.1R applies in addition to any other requirements in respect of regulated activities undertaken by the CTP.

The CTP may find it useful to refer to the FCA’s guidance in FG 20/1 (Our framework: assessing financial resources) and the Wind-down Planning Guide when considering how it meets the obligation set out in MAR 9.2C.1R.