On 5 March 2026, the Prudential Regulatory Authority (PRA) published a policy statement in relation to recognised exchanges policy and transfer of main indices.

Background

 In CP3/25, the had PRA proposed to:

  • introduce a new Recognised Exchanges Part in the PRA Rulebook specifying conditions under Article 4(1)(72)(c) of the Capital Requirements Regulation (CRR) for the purposes of identifying recognised exchanges (REs) or assets traded on such exchanges;
  • restate in the PRA Glossary the list of ‘main indices’ currently situated in Commission Implementing Regulation 2016/1646;
  • revoke supervisory statement (SS) 20/13;
  • make consequential amendments to the Counterparty Credit Risk Part of the PRA Rulebook; Credit Risk Mitigation Part of the PRA Rulebook; and SDDT – Interim Capital Regime Part of the PRA Rulebook.

Summary of changes

The PRA confirmed that it is making the relevant rules, with the following changes:

  • minor edits to the PRA Rulebook: CRR Firms: Recognised Exchanges Instrument 2026 to clarify the intended policy scope in relation to the conditions for the purposes of identifying REs or assets traded on such exchanges under Article 4(1)(72)(c) CRR and provide additional clarity as to the required assessment of an exchange’s clearing and settlement mechanism;
  • non-substantive amendments to the PRA Rulebook: CRR firms: Amendment Instrument 2026 that proposed changes to the definition of a ‘higher risk equity exposure’ to improve the clarity of the definition;
  • minor amendments to the PRA Rulebook: CRR firms: Amendment Instrument 2026 to revise the definition of main index that the instrument inserts into the Glossary Part, in order to reflect recent changes in the index market; and
  • the proposed consequential amendments to the SDDT Regime – Interim Capital Regime Part are not included given the PRA’s decision not to make final rules that give effect to the Interim Capital Regime.

Next steps

The implementation date for the PRA’s rules specifying conditions under Article 4(1)(72)(c) CRR and the revocation of SS20/13 will be Wednesday 1 July 2026.

The implementation date for the PRA’s rules specifying the definition of ‘higher risk equity exposure’, the restating of the main indices list, and the consequential amendments to the Counterparty Credit Risk and Credit Risk Mitigation Parts will be Friday 1 January 2027.