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<p>GameStop and AMC Entertainment are companies that are listed in the US and therefore
fall within the remit of the relevant US regulators.</p><p> </p><p>More broadly, however,
the UK has a robust oversight and resolution regime in place for UK clearing houses
(“CCPs”). The Government is committed to ensuring the highest regulatory standards
for CCP oversight and resolution and keeps the regulatory framework under regular
review.</p><p>Any restriction in the trading of specific UK shares would not itself
have a detrimental effect on a UK CCP’s resources, as it would only mean less transactions
cleared through the CCP.</p><p> </p><p>However, if a clearing firm was unable to meet
existing obligations to a UK CCP, the CCPs require their members to provide pre-funded
resources to mitigate against this risk. Firstly, UK CCPs require clients to post
collateral to help cover their trades if they should default on their obligations.
CCPs then also require their clients to contribute to a mutualised pool of resources,
to be used in the event the collateral provided by a defaulter is insufficient. This
pool should, at a minimum, cover the default of the CCP’s two largest clients simultaneously.</p><p>
</p><p>In the unlikely circumstances where these pre-funded resources provided by
its clients are insufficient, UK CCPs are also required to maintain a recovery plan
to ensure the continuity of its services.</p><p> </p><p>The Bank of England, as the
regulator responsible for supervising CCPs in the UK, has close oversight of the requirements
on firms set out above and is responsible for making sure that CCPs’ recovery plans
are robust and up to date.</p>
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