The Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) (Amendment) Regulations 2014 has been published along with an accompanying explanatory memorandum.
The Regulations relate to the clearing of financial transactions through recognised clearing houses (RCHs). They amend regulation 52 of the Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) Regulations 2013 which sets out transitional provisions that deal with the period during which a recognised clearing house is applying for authorisation to act as a central counterparty under the European Markets Infrastructure Regulation and is waiting for its application to be determined.
The amendment provides that while such an application made by a recognised overseas clearing house is awaiting determination, the clearing house will not be under a duty to maintain a recovery plan as would otherwise be required by paragraph 23A of the Schedule to the Financial Services and Markets Act 2000 (Recognition Requirements for Investment Exchanges and Clearing Houses) Regulations 2001. The requirement for RCHs to maintain these plans comes into effect on 1 May 2014.
The Regulations were made on 2 April 2014 and come into force on 1 May 2014.