Statutory Instruments
2024 No. 923
Financial Services
The Central Counterparties (Transitional Provision) (Extension and Amendment) Regulations 2024
Made
9th September 2024
Laid before Parliament
10th September 2024
Coming into force
29th November 2024
The Treasury make these Regulations in exercise of the powers conferred by Article 497(3) of Regulation (EU) 575/2013 1 ) (the “ Capital Requirements Regulation ”), and by regulation 18(2) of the Central Counterparties (Amendment, etc, and Transitional Provision) (EU Exit) Regulations 2018( 2 ) (the “ CCP Regulations ”).
The Treasury are 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 2024.
(2) These Regulations come into force on 29th November 2024.
(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)( 4 ) is extended by 12 months so that it ends five 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( 5 ), for “five years” substitute “six years” .
Jeff Smith
Vicky Foxcroft
Two Lords Commissioners of His Majesty’s Treasury
9th September 2024
EUR 2013/575.
As amended by S.I. 2019/1232 and 2021/1078 .
This transitional period was extended by S.I. 2022/1244 to end three years after the date of submission of the application and by S.I. 2023/999 to end four years after the date of submission of the application.
As amended by S.I. 2020/56 , 2022/1244 and 2023/999 .