§ 155.140 Establishment of a regional Exchange or subsidiary Exchange.

(a) Regional Exchange. A State may participate in a regional Exchange if: (1) The Exchange spans two or more States, regardless of whether the States are contiguous; and (2) The regional Exchange submits a single Exchange Blueprint and is approved to operate consistent with § 155.105(c). (b) Subsidiary Exchange. A State may establish one or more subsidiary Exchanges within the State if: (1) Each such Exchange serves a geographically distinct area; and (2) The area served by each subsidiary Exchange is at least as large as a rating area described in section 2701(a) of the PHS Act. (c) Exchange standards. Each regional or subsidiary Exchange must: (1) Otherwise meet the requirements of an Exchange consistent with this part; and (2) Meet the following standards for SHOP: (i) Perform the functions of a SHOP for its service area in accordance with subpart H of this part; and (ii) Encompass the same geographic area for its regional or subsidiary SHOP and its regional or subsidiary Exchange except: (A) In the case of a regional Exchange established pursuant to § 155.100(a)(2), the regional SHOP must encompass a geographic area that matches the combined geographic areas of the individual market Exchanges established to serve the same set of States establishing the regional SHOP; and (B) In the case of a subsidiary Exchange established pursuant to § 155.100(a)(2), the combined geographic area of all subsidiary SHOPs established in the State must encompass the geographic area of the individual market Exchange established to serve the State.