On 15 March 2022, the PRA updated its webpage regarding waivers and modifications of rules. The PRA has added new text regarding modification by consent for indirect derivative client clearing; Articles 411 and 428da of the Liquidity (CRR) Part of the PRA Rulebook.

The PRA explains that in light of supervisory intelligence it received after the publication of Policy Statement 17/21 ‘Implementation of Basel standards’ it has further considered the treatment of derivative client clearing under the net stable funding ratio. The PRA has decided to offer a modification by consent (MBC) in respect of certain rules in the Liquidity (CRR) part of the PRA rulebook. The MBC extends the carve-out that is applied to derivative client clearing activities, to capture situations in which firms face a clearing broker to clear client trades, rather than facing a qualifying central counterparty directly. The PRA has also provided the template modification direction.