On 1 October 2020, the Bank of England (BoE) and PRA jointly published a new webpage regarding the temporary transitional power (TTP). The new webpage provides firms and financial market infrastructures (FMIs) with information on the BoE’s and PRA’s approach to the TTP. Alongside this there was also published general guidance on the BoE’s and PRA’s transitional directions.
Among other things, the webpage includes information concerning the interaction between the TTP and other transitional or saving provisions including specific transitional relief for bilateral margining. It also covers exceptions specifically relating to PRA-regulated firms including obligations relating to the Securitisation Regulation. Additional exceptions to the transitional power specifically relating to FMIs is also discussed and covers:
- Central counterparty (CCP) obligations under the Markets in Financial Instruments Regulation.
- Specific CCP obligations under the European Markets Infrastructure Regulation.
- Arrangements the UK has put in place to extend settlement finality protection to FMIs not governed by UK law and to certain third-country central banks
- Arrangements that the UK has put in place for the recognition of third-country central securities depositories.