On 15 September 2026, there were published the Central Counterparties (Transitional Provision) (Extension and Amendment) Regulations 2025, with an explanatory memorandum.
Background
The government intends to lay statutory instruments which implement an updated central counterparty (CCP) framework in 2026, subject to Parliamentary time. However, as HM Treasury intends to lay the relevant legislation to implement these changes later in 2026, the updated CCP framework may not come into force until after the expiry of the overseas qualifying CCP (QCCP) transitional regime. This instrument therefore extends the time period for which overseas CCPs possess QCCP status after submitting an application for recognition, from six years post submission to seven years.
Summary
The Regulations extend the transitional provisions in relation to CCPs which are established outside of the UK, in particular:
- Regulation 2: extends the transitional period provided for in Article 497(1)(b)(ii) of the of UK Capital Requirements Regulation (UK CRR) by 12 months.
- Regulation 4: makes 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 provided for relating to qualifying CCPs align with the extended expiry date under Article 497 of UK CRR.
- Regulation 5: provides a transitional provision for CCPs that are treated as QCCPs because they applied for recognition under Article 25 of UK EMIR on or after 1 January 2027 so that the same maximum transitional period applies whether a CCP applied for recognition either before, on or after 1 January 2027.
Next steps
The Regulations will come into force on 1 December 2026.