UK Central Counterparties (Transitional Provision) (Extension and Amendment) Regulations 2024 Published

The U.K. Central Counterparties (Transitional Provision) (Extension and Amendment) Regulations 2024 (together with explanatory memorandum) have been published. The Regulations come into force on November 29, 2024. The SI:

• extends the temporary recognition regime for overseas central counterparties by 12 months, until December 31, 2026. This will allow overseas CCPs in the regime to continue to offer clearing services in the U.K. whilst they wait for their applications for recognition to be determined by the Bank of England;
• extends the transitional regime for overseas qualifying central counterparties (QCCPs) contained within the U.K. Capital Requirements Regulation for an additional 12 months. The expiry date of the QCCP transitional regime varies between individual CCPs as it is dependent on when a firm has applied for recognition in the U.K., but the explanatory memorandum notes that for a large percentage of firms this currently expires on December 31, 2024. The extension will ensure that U.K. firms with indirect exposures to the QCCPs within the regime will not face a sudden and disruptive increase in their capital requirements on the expiry of the QCCP transitional regime. HM Treasury has previously extended the temporary recognition regime and the QCCP transitional regime twice, by 12 months each time.

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