UK regulations made to extend transitional regime for overseas CCPs

The Central Counterparties (Transitional Provision) (Extension and Amendment) Regulations 2026 were laid before Parliament, accompanied by an explanatory memorandum. The Regulations extend the transitional provisions for overseas qualifying central counterparties (QCCPs) under Article 497 of the UK Capital Requirements Regulation by a further 12 months, to seven years after an application for recognition was made. This extension aims to ensure that UK firms with indirect exposures to these overseas CCPs do not face a sudden and disruptive increase in their capital requirements upon expiry of the QCCP transitional regime, which the explanatory memorandum notes for some CCPs within the regime could otherwise fall as early as 31 December.

As part of broader efforts to modernise the UK regulatory framework for UK and overseas CCPs, the government has already announced proposals for a new permanent framework for determining QCCP status. This would replace the current QCCP transitional regime. HM Treasury intends to legislate to implement these reforms later in the year.

The Regulations also make consequential amendments to the Financial Services and Markets Act 2023 (Commencement No. 15 and Saving and Transitional Provisions) Regulations 2026 to ensure that the saving and transitional provisions in that instrument in respect of QCCPs align with the extended expiry date.

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