(1) The Financial Services and Markets Act 2000 (Recognition Requirements for Investment Exchanges and Clearing Houses) Regulations 2001 [S.I. 2001/995; amended by S.I. 2005/381 and 2006/3386.] are amended as follows.

(2) In paragraph (1) of regulation 3 (interpretation), after the definition of "credit institution", insert -

""default fund" means the sum of the default fund contributions by the members or designated non-members of a recognised investment exchange to that exchange or by one recognised investment exchange to another or by the members of a recognised clearing house to that clearing house or by one recognised clearing house to another to the extent those contributions have not been returned or otherwise applied;

"default fund contribution" has the same meaning as in section 188(3A) of the Companies Act;".

(3) In the Schedule -

(a) in paragraph 10 after sub-paragraph (3) insert -

"(4) Sub-paragraph (5) applies where the exchange has arrangements for transacting business with, or in relation to common members of, a recognised clearing house or another recognised investment exchange.