There is an interface here between a clearing house and a recognised investment exchange. Recognised investment exchanges are regulated by the FCA. The hon. Member for Kilmarnock and Loudoun was right that a UK clearing house is regulated by the Bank of England because it is part of the financial infrastructure. Information has to be transferred from the recognised investment exchange to the clearing house. So there has to be a report of trades done. That transfer of information from the exchange to the clearing house helps facilitate clearing. It is described as a clearing service. It is not clearing itself: it is a clearing service. So providing information that helps to facilitate that clearing is not the same as clearing and so is regulated by the FCA as part of a recognised investment exchange’s activities. That is where that interconnection is regulated.
The hon. Lady referred to clearing houses outside the UK. The authorisation and regulation of clearing houses in the EU will be covered by the European market infrastructure regulation which ensures a consistent approach to authorisation across Europe. I hope that that clears up why we have this exemption in clause 26.