On 13 July 2026, there was published The Central Counterparties (Equivalence) Regulations 2026.
Background
Following the UK’s exit from the EU on 31 January 2020, at the end of the transition period on 31 December 2020 around 270 EU equivalence decisions were assimilated into UK law. Equivalence refers to legislative provisions inherited from the EU that, for different areas of financial services, allow HM Treasury (HMT) to determine that the regulatory and supervisory approach taken by an overseas jurisdiction achieves similar outcomes to the UK.
However, equivalence decisions for central counterparties (CCPs), made by the EU under Article 25(6) of European Market Infrastructure Regulation (EMIR), were not among those decisions. HMT elected instead for the UK to conduct its own assessment of CCP regulatory regimes, and then to make its own decision on whether to grant equivalence. Article 25(6) of EMIR requires equivalence determinations to be made in the form of regulations.
Summary
This regulation is an equivalence determination with respect to the regulatory framework in relation to authorisation and supervision of CCPs in Australia, Japan, the United States (where CCPs are under Securities and Exchange Commission authorisation), Hong Kong, India, the United Arab Emirates or South Africa, by the relevant regulator in that jurisdiction.
This regulation grants non-time limited equivalence, which is a pre-requisite for recognition to be considered by the Bank of England and non-time limited access to the UK. The equivalence determinations made in this regulation do not alter the scope or type of services that a specified CCP from one of the specified jurisdictions is able to provide to UK clearing members and trading venues.
Next steps
This regulation will come into force on 3rd August 2026.
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