On 29 August 2023, the FCA updated its statement on the use of the temporary transitional power to modify the UK’s derivatives trading obligation (DTO). The updated statement announces that the FCA has varied its transitional direction for the DTO under the UK Markets in Financial Instruments Regulation (UK MiFIR).

The FCA explains that, with effect from 29 August 2023, the DTO (which is set out in Article 28 of UK MiFIR) was modified by the commencement of provisions in the Financial Services and Markets Act 2023. The modifications bring the scope of the DTO in line with the scope of the clearing obligation in the UK version of the European Market Infrastructure Regulation – further information is set out in the accompanying explanatory note.