Extending two transitional regimes for overseas central counterparties
Published 10 November 2022
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HM Treasury intends to lay a statutory instrument, extending the Temporary Recognition Regime (TRR) for overseas central counterparties (CCPs) and the transitional regime for Qualifying central counterparties (QCCPs) by a period of 12 months.
The statutory instrument will amend Article 18(1) of the Central Counterparties (Amendment, etc., and Transitional Provision) (EU Exit) Regulations 2018[1], using powers conferred upon HM Treasury in regulation 18(2) of the same Regulations, to extend the TRR by an additional year, so that the expiry date falls on 31 December 2024.
The statutory instrument will also extend, by an additional year, the deadline provided for in paragraph 1(b)(ii) of Article 497 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and amending Regulation (EU) No 648/2012[2]. This will ensure that overseas CCPs from a non-equivalent jurisdiction, which have applied for recognition in the UK, will benefit from QCCP status for three years after the date of submitting their application, rather than two. This will be done through exercising HM Treasury’s powers conferred by Article 497(3) of the same Regulations.
The statutory instrument will be made and laid in November and will provide that it comes into force before the end of 2022.
[1] SI 2018/1184
[2] EUR 2013/575. This Regulation was retained in domestic law on the UK’s exit from the EU and amended by regulations made in exercise of the powers in section 8 of the European Union (Withdrawal) Act 2018.