[ad_1]
On 30 November 2022, HM Treasury published the Central Counterparties (CCPs) (Transitional Provision) (Extension and Amendment) Regulations 2022.
The Regulations extend the temporary recognition regime (TRR) for overseas central counterparties (CCPs) by 12 months, so that the expiry date is pushed back until 31 December 2024. This will allow overseas CCPs, currently in the regime, to continue to offer clearing services in the UK whilst they wait for their applications for recognition to be determined by the Bank of England (BoE).
It also extends the transitional regime for qualifying CCPs (QCCPs) contained within the Capital Requirements Regulation (CRR) 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. However, for most firms within the regime, the expiry date currently falls on 31 December 2022.
The QCCP transitional regime ensures that UK firms with indirect exposures to these QCCPs can continue to benefit from favourable capital treatment. “Indirect exposures” could occur, for example, where a UK firm receives clearing services from the relevant overseas CCP via another firm. The extension will ensure that UK 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 transitional.
The Regulations come into force on 22 December 2022.
[ad_2]
Source link
