On 2 May 2025, the Financial Conduct Authority (FCA) published Handbook Notice No 129.
This Handbook Notice describes the changes to the FCA Handbook and other material made by the FCA Board under their legislative and other statutory powers on 27 March 2025.
On this date the FCA Board approved:
- Technical Standards (Markets in Financial Instruments Regulation) (Derivatives Trading Obligation and Transparency) (Amendment) Instrument 2025.
- Markets in Financial Instruments Regulation (Post-trade Risk Reduction Services Rules) (Amendment) Instrument 2025.
Following CP24/14 the FCA Board has amended Commission Delegated Regulation (EU) 2017/2417 of 17 November 2017 supplementing MiFIR with regard to regulatory technical standards on the trading obligation for certain derivatives. The FCA has also made certain changes to the Handbook including introducing a new chapter (MAR 12).
In summary, these instruments make changes to the classes of secured overnight financing rate overnight index swaps (SOFR OIS) subject to the Derivatives Trading Obligation (DTO). It also establishes the new framework to provide exemptions from the DTO, and other relevant obligations, for transactions arising from the use of post-trade risk reduction services.