HM Treasury has published for feedback a draft statutory instrument to implement the revised provisions for CCPs in the European Market Infrastructure Regulation (known as EMIR 2.2.) into U.K. law once the Brexit implementation period ends (currently scheduled for December 31, 2020). HM Treasury is publishing the draft instrument to provide Parliament and stakeholders the opportunity to provide feedback on the proposed approach before the instrument is laid before Parliament. The draft instrument–Over the Counter Derivatives, Central Counterparties and Trade Repositories (Amendment, etc., and Transitional Provision) (EU Exit) Regulations 2020–is due to be laid before Parliament in the Spring.
EMIR 2.2 was published in the Official Journal of the European Union on December 12, 2019 and has applied directly across the EU since January 1, 2020. EMIR 2.2 introduced changes to the procedures and authorities involved in the authorization of CCPs and the requirements for the recognition of third-country CCPs. Many of the changes relevant to third-country CCPs can be analyzed as largely being a response to the U.K.'s decision to leave the EU. One of the main components of EMIR 2.2 is the introduction of categories of third country CCPs into:
In line with the U.K.'s approach to onshoring financial services legislation, HM Treasury intends to adopt EMIR 2.2 without any material policy changes, including as regards the controversial location policy. The draft Regulations will make amendments to existing U.K. legislation as well as U.K. EMIR and other EU Exit legislation to accommodate certain changes as a result of EMIR 2.2. The intention is to ensure that U.K. EMIR is still operable in the U.K. after the U.K. leaves the EU. In particular, the draft Regulations will:
View the draft statutory instrument onshoring EMIR 2.2.
View the policy note.
View details of EMIR 2.2.
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