On 10 September 2024, the Central Counterparties (Transitional Provision) (Extension and Amendment) Regulations 2024 were made and published on legislation.gov.uk, along with an explanatory memorandum.

The Regulations extend:

• The temporary recognition regime (TRR) for overseas central counterparties (CCPs) by 12 months, so that the expiry date is pushed back until 31 December 2026. This will allow overseas CCPs in the regime to continue to offer clearing services in the UK whilst they wait for their applications for recognition to be determined by the Bank of England (BoE).
• The transitional regime for overseas qualifying CCPs (QCCPs), which is set out in the Capital Requirements Regulation, also for an additional 12 months. The transitional regime for QCCPs ensures that UK firms with indirect exposures to these overseas CCPs can continue to benefit from favourable capital treatment. The expiry date of this transitional regime differs between individual CCPs, as it depends on when a firm applied for recognition in the UK. However, for a large percentage of firms in the regime, the expiry date is currently 31 December 2024.

HM Treasury has extended the TRR and the QCCP regime twice before, by 12 months each time, in the Central Counterparties (Transitional Provision) (Extension and Amendment) Regulations 2022 and the Central Counterparties (Transitional Provision) (Extension and Amendment) Regulations 2023.  

The Regulations come into force on 29 November 2024.