Section 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. 77 FR 18444 , Mar. 27, 2012, as amended at 78 FR 54134 , Aug. 30, 2013