UK Government Consultation on Regulation of Central Counterparties and Central Securities Depositories

HM Treasury has released a further consultation under the Future Regulatory Framework Review concerning the regulation of central counterparties and central securities depositories. The Future Regulatory Framework Review is designed to assess whether the U.K. financial services regulatory framework is fit for purpose, considering the U.K.'s exit from the EU, climate change and other global and technological challenges. HM Treasury has published a series of consultations on different aspects of the future framework, including the Phase II consultation in October 2020 and the Proposals for Reform paper published in November 2021. Responses to HM Treasury's latest consultation on CCPs and CSDs may be submitted until February 28, 2022.

The proposals in the consultation include:

• granting the Bank of England powers to set regulatory requirements for CCPs and CSDs;
• enhancing the BoE's statutory objectives as they relate to CCPs and CSDs;
• subjecting the BoE to the same regulatory principles as the PRA and FCA with respect to its regulation of CCPs and CSDs (including efficiency and economy, proportionality and sustainable growth); and
• enhancing the BoE's accountability mechanisms when exercising its CCP and CSD powers.

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