On 14 September 2023, HM Treasury published Statutory Instrument 2023 No.999, the Central Counterparties (Transitional Provision) (Extension and Amendment) Regulations 2023 (the SI).
The SI extends transitional provisions provided for in the onshored Capital Requirements Regulation (CRR) and the Central Counterparties (Amendment, etc., and Transitional Provision) (EU Exit) Regulations 2018 (the CCP Regulations) as extended by the Central Counterparties (Transitional Provision) (Extension and Amendment) Regulations 2022.
The SI extends the transitional provisions in relation to central counterparties (CCPs) which are established outside of the UK.
Regulation 2 of the SI provides that the transitional period provided for in Article 497(1)(b)(ii) of the CRR is extended by 12 months. Article 497(1)(b)(ii) sets out this transitional period for overseas CCPs which have applied to be recognised by the Bank of England after 27 June 2019.
Regulation 3 of the SI amends regulation 18(1) of the CCP Regulations, which provides the temporary recognition period for overseas CCPs within the temporary recognition regime established by those Regulations. It extends this temporary recognition period by 12 months.
The SI enters into force on 1 November 2023.