On Sep. 10, UK Treasury extended regime for central counterparties.
UK Treasury published the Central counterparties (transitional provision) (extension and amendment) regulations 2024 (StIn 2024/923), made on Sep. 9, 2024.
Follows UK Treasury Sep. 2023 further extended the transitional regime, see #184805.
Overview
This instrument extends the temporary recognition regime (TRR) for overseas central counterparties (CCPs) by 12 months, so the expiry date is delayed until Dec. 31, 2026.
This will allow overseas CCPs in the regime to continue to offer clearing services in the UK whilst they wait for their applications for recognition to be determined by UK BoE.
It also extends the transitional regime for overseas qualifying CCPs (QCCPs) contained within the Capital requirements regulation 1 for an additional 12 months.
The expiry date of this transitional regime differs between individual CCPs as it is dependent on when a firm has applied for recognition in the UK.
For a large percentage of firms under the regime, the expiry falls on Dec. 31, 2024.
The transitional regime for QCCPs ensures that UK firms with indirect exposures to these overseas CCPs can continue to benefit from favorable capital treatment.
