On Nov. 10, UK Treasury issued rules on extending transitional regime.
UK Treasury will extend two transitional regimes for overseas central counterparties.
Overview
UK Treasury will lay a statutory instrument extending the temporary recognition regime (TRR) for overseas central counterparties (CCPs) and the transitional regime for qualifying central counterparties (QCCPs) by 12 months, in force before end 2022.
The statutory instrument will amend article 18(1) of the Central Counterparties (Amendment, etc., and Transitional Provision) (EU Exit) Regulations 2018.
It will do this using powers conferred upon UK Treasury in regulation 18(2) of the same regulations, to extend the TRR by an extra year, so expiry falls on Dec. 31, 2024.
The statutory instrument will also extend, by an additional year, the deadline provided for in paragraph 1(b)(ii) of article 497 of regulation (EU) No 575/2013 on prudential requirements for credit institutions and amending EU regulation no 648/2012.
This will ensure overseas CCPs from non-equivalent jurisdiction, which have applied for UK recognition, will have QCCP status for 3 years after submitting application, not 2.
Effectiveness
The statutory instrument will be made and laid in Nov. 2022; in force before end 2022.
Nov. 2022 Rules Issued
On Nov. 30, 2022, UK GVT issued rules entitled Central counterparties (transitional provision) (extension and amendment) regulations 2022 (StIn 2022/1244).
Amendments are made to the Central counterparties (amendment, etc., and transitional provision) (EU Exit) regs 2018 (StIn 2018/1184) as from Dec. 22, 2022.
Extend temporary recognition regime (TRR) for overseas CCPs until Dec. 31, 2024.
This will allow overseas CCPs in the regime to continue to offer clearing services in UK whilst they wait for their applications for recognition to be determined by the UK BoE.
