1. The Central Bank may designate any Financial Market Infrastructure as systemically important (‘Designated Infrastructure’) if it considers, at its own discretion, that any malfunction or inefficiency in the operation of such infrastructure would negatively impact processing of the daily operations of financial institutions operating in the State, or the stability of the financial system in the State. 2. For a Financial Market Infrastructure to be designated, it shall meet one of the following conditions: a. The concerned infrastructure is operating in the State; b. The concerned infrastructure has the capacity to accept clearing and settlement of financial Transfer Orders denominated in Dirham, without prejudice to the provisions of Article (28) of this decree-law; or c. The concerned infrastructure has the capacity to provide transfer, clearing or settlement of financial Transfer Orders, for retail and wholesale payment activities, denominated in any currency. 3. Should the Central Bank intend to designate any of the Financial Market Infrastructures it licenses as systemically important, it shall: a. Notify the operator of the infrastructure, or its Settlement Institution, officially, of its intention to designate this infrastructure as systemically important, clarify grounds of such intention, in addition to other terms and conditions attached to such designation. b. Allow such period as specified in the notice referred to in paragraph (a) of this item, which shall not be less than ten (10) working days from date of notification, within which the infrastructure’s operator or its Settlement Institution may provide their opinions, or make representations, as to why such infrastructure should not be designated. c. Issue its decision on designation of the infrastructure, within a period not exceeding twenty (20) working days from date of receipt of responses from concerned parties, or expiry of the period stated in the notice, without response. 4. The operator of the Designated Infrastructure or the Settlement Institution may submit a grievance against the designation decision referred to in item (3) of this article by applying to the Grievances and Appeals Committee, in accordance with the provisions of this decree-law. 5. Unless specified by the Central Bank, any Financial Market Infrastructure established, developed, or operated, in accordance with the provisions of Article (153) of this decree-law shall be deemed as Designated Infrastructure. 6. Should the Central Bank intend to designate any of the Financial Market Infrastructures licensed by any of the other Regulatory Authorities in the State, abroad, or in a Financial Free Zone as systemically important, it shall submit its opinion in this regard to the concerned regulatory authority. Should the concerned regulatory authority have no objection to such designation, it shall: a. Notify the operator of the infrastructure or its Settlement Institution, officially, of the intention to designate this infrastructure as systemically important, clarify grounds of such intention, in addition to other terms and conditions attached to such designation. b. Allow such period as specified in the notice referred to in paragraph (a) of this item, which shall not be less than ten (10) working days from date of notification, within which the infrastructure’s operator or its Settlement Institution may provide their opinions, or make representations, as to why such infrastructure should not be designated. c. Issue and notify the Central bank of its final approval or disapproval decision, on the Central Bank’s request to designate the concerned infrastructure, in accordance with the provisions of this article, within a period not exceeding twenty (20) working days from date of receipt of responses from concerned parties, or expiry of the period stated in the notice, without response. 7. The Central Bank may revoke designation of a particular Financial Market Infrastructure it licenses or request such action from the concerned regulatory authority, if it considered, at its own discretion, that the infrastructure is no longer of systemic importance. The concerned regulatory authority, the operator of the infrastructure, or its Settlement Institution shall be notified, officially, of such decision, as the case may be.
Interpretation and application must be checked against the official text and current version.