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Explanatory note

Original text. Later amendments are not shown.

(This note is not part of the Regulations)

These Regulations set out the Treasury’s equivalence determinations in respect of the regulatory framework that applies to certain central counterparties (CCPs) that are established in Australia, Hong Kong, India, Japan, South Africa, United Arab Emirates and the United States of America.

These Regulations are made in exercise of the powers conferred by Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4th July 2012 on OTC derivatives, central counterparties and trade repositories (UK EMIR). Article 25(1) of UK EMIR provides that a CCP established overseas may only provide clearing services to clearing members or trading venues established in the United Kingdom where that CCP is recognised by the Bank of England. The Bank of England is only able to recognise a CCP where the legal and supervisory arrangements of the overseas market in which they operate have been determined, by the Treasury, as equivalent to those of the United Kingdom.

Regulation 2 sets out the Treasury’s determination that the regulatory frameworks in relation to CCPs established overseas and implemented by the relevant regulatory authorities as specified in the table in Part 1 of the Schedule are equivalent to the United Kingdom’s framework.

Part 1 of the Schedule specifies the countries and descriptions of CCP to which the determinations apply. In each case the determination applies only to CCPs that are established in the specified country and are authorised, licensed or otherwise subject to supervision by the relevant regulatory authorities identified in the Schedule.

Part 2 of the Schedule makes further requirements in relation to certain CCPs established in the United States of America and registered with the Securities and Exchange Commission.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen. A de minimis impact assessment is available from HM Treasury, 1 Horse Guards Road, London SW1A 2HQ and is published with the Explanatory Memorandum alongside this instrument at www.legislation.gov.uk.