1.1.1. Application procedure

A Person which operates an investment exchange or clearing house from a place of business in a jurisdiction other than the AIFC may apply to the AFSA for an order declaring it to be a Recognised Non-AIFC Investment Exchange or Recognised Non-AIFC Clearing House as appropriate by:

• (a) providing the information and documents required in these Rules and such further information and documents as the AFSA may require;
• (b) paying the Fee prescribed in the Fees Rules to the AFSA.

1.1.2. Required contents

Applications for recognition as a Recognised Non-AIFC Investment Exchange or a Recognised Non-AIFC Clearing House must contain:

• (a) the address of the applicant's head office in its country of registration;
• (b) an address located in the AIFC for the service on the applicant of notices or other documents required or authorised to be served on it; and
• (c) a description of the activities that the applicant envisages carrying on in the AIFC.

1.1.3. Recognition Requirements

An applicant for an order declaring it to be a Recognised Non-AIFC Investment Exchange or Recognised Non-AIFC Clearing House must satisfy the AFSA that the requirement of section 89(3) of the Framework Regulations (“the Recognition Requirements”) are met.

1.1.4. Equivalent protection

For the purposes of section 89(3)(a) of the Framework Regulations, an applicant must provide to the AFSA a legal analysis

1. (a) comparing the regulatory requirements in the applicant's home jurisdiction with Part 4 of the Framework Regulations and Chapters 2 and 3 or 4 (as appropriate) of the AMI Rules; and
2. (b) if relevant, identifying any respects in which the regulatory requirements in the applicant’s home jurisdiction do not provide a level of protection to investors equivalent to that required in the AMI rules.

1.1.5. Additional information required for Clearing Houses

An applicant for recognition as a Recognised Non-AIFC Clearing House must demonstrate that it has QCCP status as defined in P6 of the Bank for International Settlements' paper BCBS 282 entitled "Capital requirements for bank exposures to central counterparties".

1.1.6. Default procedures

For the purposes of section 89(3)(b) of the Framework Regulations, an applicant must satisfy the AFSA that:

1. (a) it has procedures for dealing with a Person who is unable, or likely to become unable, to meet its obligations in respect of one or more Market Contracts connected with the applicant;
2. (b) that such procedures are at least equivalent to the procedures required under AMI; and
3. (c) that such procedures would remain effective and legally enforceable in the context of its proposed activities in the AIFC.

1.1.7. Co-operation and information

For the purposes of section 89(3)(c) of the Framework Regulations, an applicant must satisfy the AFSA that:

1. (a) it is permitted under the laws of its home jurisdiction to share information on its activities with the AFSA; and
2. (b) that it has appropriate procedures to enable the sharing of such information and other reasonable forms of co-operation with the AFSA.

1.1.8. Co-operation with the applicant’s home regulator

For the purposes of section 89(3)(d) of the Framework Regulations, the AFSA will have regard to:

1. (a) any bilateral or multilateral memorandum of understanding that it may have with the regulator of the applicant in its home jurisdiction; and
2. (b) any other mechanisms that exist for co-operation and the sharing of information between the AFSA and the relevant regulator.