On 10 January 2025, HM Treasury (HMT) issued its response following its November 2023 call for evidence on the exemption which pension funds currently have from the obligation to clear certain derivatives contracts. The government previously extended the exemption to 18 June 2025 and noted that it would conduct a review to determine
On 19 December 2024, the Bank of England (BoE) published certain papers regarding central counterparty (CCP) resolution.
Power to direct a CCP to address impediments to resolvability
Earlier this year the BoE issued a consultation paper describing its proposed approach to exercising its power to direct a CCP to address impediments
The Global Foreign Exchange Committee (GFXC) has issued a press release following its virtual meeting on 5–6 December 2024.
Among other things the press release notes that:
On 10 December 2024, the Financial Stability Board (FSB) issued policy recommendations to enhance the liquidity preparedness of non-bank market participants for margin and collateral calls in centrally and non-centrally cleared derivatives and securities markets (including securities financing such as repo).
The policy recommendations are part of the FSB’s work programme on enhancing
On 5 December 2024, the Financial Stability Board (FSB) published its 2024 Resolution Report.
The Resolution Report takes stock of the FSB resolution-related work of the past year as well as of the progress made by FSB members in implementing resolution reforms and enhancing resolvability across the banking, financial market infrastructure, and
On 3 December 2024, the Bank of England (BoE) published a speech entitled ‘Once more unto the breach’, which was delivered by its Head of Foreign Exchange Division, Phillippe Lintern, at the FX Markets Europe event.
In the speech, Mr Lintern reflects on the lessons learnt from the history of the FX
On 3 December 2024, the Markets in Financial Instruments (Equivalence) (Singapore) Regulations 2024
were laid before Parliament and published on legislation.gov.uk, along with an explanatory memorandum.
The Regulations set out HM Treasury’s determination that Singapore’s regulatory and supervisory regime for trading in derivatives is equivalent to the UK’s and allows UK counterparties to fulfil
On 2 December 2024, the Financial Conduct Authority (FCA) published an updated direction to modify the UK’s derivatives trading obligation (DTO), which is expiring.
Background
The DTO is a G20 commitment to improve over-the-counter derivatives markets, which the UK implemented through Article 28 of the UK Markets in Financial Instruments
On 29 November 2024, the International Organization of Securities Commissions (IOSCO) issued a final report on the evolution in the operation, governance and business models of exchanges. The final report focuses on equity exchanges but may be of relevance to other types of trading venues and trading in other classes of financial instruments.
On 26 November 2024, the Collective Investment Schemes (Temporary Recognition) and Central Counterparties (Transitional Provision) (Amendment) Regulations 2024 came into force and were published on legislation.gov.uk, along with an explanatory memorandum.
The Regulations set out provisions to: