Defines recognised entities: a recognised investment exchange is an investment exchange with a recognition order in force; a recognised clearing house is either a central counterparty with a recognition order (a recognised central counterparty) or a clearing house providing clearing services in the United Kingdom without doing so as a central counterparty and with a recognition order. A third country central counterparty is established outside the UK and recognised by the Bank of England under Article 25 of EMIR. A recognised CSD is a central securities depository with a recognition order; a third country CSD is a CSD outside the UK recognised by the Bank of England under Article 25 of the CSD Regulation. Certain subsections are marked deleted.

Exemptions from the general prohibition: recognised investment exchanges are exempt for regulated activities carried on as part of their exchange business or to facilitate another person’s provision of clearing services. Recognised clearing houses that are not recognised central counterparties are exempt for activities carried on for or in connection with providing clearing services or facilitating another’s clearing services. Subsection (2) and (3) do not apply to the regulated activity in article 63S of the RAO (administering a benchmark). Recognised central counterparties and third country central counterparties are exempt for activities specified in their recognition. Recognised CSDs are exempt for core services in Section A of the CSD Regulation Annex authorised under Article 16 or 19(1)(a) or (c), and for non‑banking ancillary services in Section B authorised or notified under Article 19; third country CSDs are exempt for services covered by their Article 25 recognition. Recognised or third country CSDs are not exempt for banking‑type ancillary services in Section C. The Treasury may by order amend paragraph (b) of subsection (2) or (3).