On 24 March 2021, the FCA issued a statement on its website concerning a review of the approach to the UK’s derivatives trading obligation (DTO).
In December the FCA published a statement on its use of the Temporary Transitional Power (TTP) to modify the application of the DTO. In that statement the FCA said that it would keep the use of the TTP under review and consider by 31 March 2021 whether market or regulatory developments warrant a review of its approach.
In its latest statement the FCA states that it has not observed market or regulatory developments in the first quarter of 2021 that justify a change in approach. The FCA will therefore continue to use the TTP to modify the application of the DTO as previously set out.
As specified in the December statement, the FCA expects firms and other regulated persons to be able to demonstrate compliance with the UK DTO.