In Schedule 17A to FSMA 2000 (further provision in relation to exercise of Part 18 functions by Bank of England), before paragraph 10 (and the heading before it) insert -
"Requirements
(1) The powers conferred by section 55L(3) (FCA own-initiative power to impose requirements on authorised persons) are exercisable by the Bank to impose requirements on a relevant FMI entity.
(2) In this paragraph "relevant FMI entity" means -
(a) a recognised central counterparty,
(b) a recognised CSD, or
(c) a systemic third country CCP as defined by section 300G(7).
(3) The power under sub-paragraph (1) is exercisable only if it appears to the Bank that either (or both) of the following conditions is met.
(4) The first condition is that it is desirable to exercise the power in order to advance the Financial Stability Objective.
(5) The second condition is that the relevant FMI entity -
(a) has failed, or is likely to fail, to satisfy the recognition requirements, or
(b) has failed to comply with an
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