Statutory Instruments
2022 No. 1244
Financial Services
The Central Counterparties (Transitional Provision) (Extension and Amendment) Regulations 2022
Made
28th November 2022
Laid before Parliament
30th November 2022
Coming into force
22nd December 2022
The Treasury makes these Regulations in exercise of the powers conferred by article 497(3) of Regulation (EU) 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation No 648/2012( 1 )(the “ Capital Requirements Regulation ”), and by regulation 18(2) of the Central Counterparties (Amendment, etc., and Transitional Provisions) (EU Exit) Regulations 2018( 2 )(the “ CCP Regulations ”).
The Treasury is satisfied that it is necessary and proportionate to extend the transitional provisions in paragraph 1 of Article 497 of the Capital Requirements Regulation in order to avoid disruption to international financial markets, and that it is necessary and proportionate to extend the temporary recognition period in regulation 18(1) of the CCP Regulations in order to avoid disruption to the financial stability of the United Kingdom.
Citation, commencement and extent
1. —(1) These Regulations may be cited as the Central Counterparties (Transitional Provision) (Extension and Amendment) Regulations 2022.
(2) These Regulations come into force on 22nd December 2022.
(3) These Regulations extend to England and Wales, Scotland and Northern Ireland.
Extension of the transitional period for third-country central counterparties under Article 497 of Regulation (EU) 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation No 648/2012
2. In Article 497 (own funds requirements for exposures to CCPs) of Regulation (EU) 575/2013( 3 ), the transitional period referred to in paragraph 1(b)(ii) is extended by 12 months so that it ends three years after the date of the submission of the application.
Amendment to the Central Counterparties (Amendment, etc., and Transitional Provision) (EU Exit) Regulations 2018
3. In regulation 18(1) (temporary deemed recognition period) of the Central Counterparties (Amendment, etc., and Transitional Provision) (EU Exit) Regulations 2018, for “three years” substitute “four years” .
Nigel Huddleston
Amanda Solloway
Two Lords Commissioners of His Majesty’s Treasury
28th November 2022