On Sep. 18, 2025, UK Treasury published the Central Counterparties (Transitional Provision) (Extension and Amendment) Regulations 2025 (StIn 2025/1030).
This instrument extends the temporary recognition regime (TRR) for overseas central counterparties (CCPs) by 12 mths, so the expiry date is delayed until Dec. 31, 2027.
This will allow any 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 UK BoE.
Also allows more time for UK’s updated regulatory framework to be put into place.
Note UK Treasury issued 2 draft statutory instruments for comment on Jul. 15, 2025, and policy note, which set out main provisions of updated framework (see #262589).
This instrument also extends the transitional regime for overseas qualifying CCPs (QCCPs) contained within the Capital Requirements Regulation for additional 12 mths.
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, but for a large percentage of firms within the regime, the expiry date currently falls on Dec. 31, 2025.
The regulations come into force on Nov. 28, 2025.
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.
Effectiveness
The regulations come into force on Nov. 29, 2024.
Sep. 2025 Further Extension
On Sep. 18, 2025, UK Treasury published the Central Counterparties (Transitional Provision) (Extension and Amendment) Regulations 2025 (StIn 2025/1030).
This instrument extends the temporary recognition regime (TRR) for overseas central counterparties (CCPs) by 12 mths, so the expiry date is delayed until Dec. 31, 2027.
This will allow any 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 UK BoE.
Also allows more time for UK’s updated regulatory framework to be put into place.
Note UK Treasury issued 2 draft statutory instruments for comment on Jul. 15, 2025, and policy note, which set out main provisions of updated framework (see #262589).
This instrument also extends the transitional regime for overseas qualifying CCPs (QCCPs) contained within the Capital Requirements Regulation for additional 12 mths.
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, but for a large percentage of firms within the regime, the expiry date currently falls on Dec. 31, 2025.
