# The Over the Counter Derivatives, Central Counterparties and Trade Repositories (Amendment, etc., and Transitional Provision) (EU Exit) Regulations 2020, Regulation 20: Article 25: general amendments


(1) Article 25 (recognition of a third-country CCP) is amended as follows.
(2) In paragraph 1—
(a) for “Union” substitute “United Kingdom”;
(b) for “ESMA” substitute “the Bank of England”.
(3) In paragraph 2—
(a) for the words “ESMA after consulting the authorities referred to in paragraph 3,” substitute “The Bank of England”;
(b) in point (a) for the words “the Commission has adopted an implementing act” substitute “the Treasury has made regulations”;
(c) in point (d) for the words “considered” to the end substitute “a high-risk third country within the meaning of regulation 33 of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017”.
(4) In the first subparagraph of paragraph 2a—
(a) for the words from the beginning to “paragraph 3,” substitute “The Bank of England must”;
(b) for the words “Union or of one or more of its Member States” substitute “United Kingdom”;
(c) in point (a)—
(i) for the first two references to “Union” substitute “United Kingdom”;
(ii) for “Union or on one or more of its Member States” substitute “United Kingdom”;
(d) in point (a)(i)—
(i) for “each Union currency” substitute “pounds sterling”
(ii) for the words “in the Union” to the end substitute “in the United Kingdom, including where they have been identified by the PRA as other systemically important institutions (O-SIIs) in accordance with regulation 29 of the Capital Requirements (Capital Buffers and Macro-prudential Measures) Regulations 2014; and;”;
(e) in point (b)(iv) for the words “Union or of one or more of its Member States” substitute “United Kingdom”;
(f) in points (c) and (d) for “Union” substitute “United Kingdom”;
(g) in point (d) omit “in financial instruments denominated in Union currencies”;
(h) in point (e) for “Union or one or more of its Member States” substitute “United Kingdom”.
(5) For the second subparagraph of paragraph 2a substitute—
“The Bank of England may make technical standards specifying further the criteria set out in the first subparagraph.”;
(6) In the third subparagraph of paragraph 2a for “ESMA shall” substitute “the Bank of England must”.
(7) In paragraph 2b—
(a) for “ESMA”, in each place it occurs apart from in point (a), substitute “the Bank of England”;
(b) in point (a) for the words from “With regard to the CCP’s compliance” to “Article 24b(1). ESMA” substitute “The Bank of England”;
(c) omit point (b);
(d) in point (c) for “three working days after service of” substitute “the time specified in”;
(e) for point (e) substitute—
“(e) the Treasury have not made location regulations under paragraph 2c in relation to the CCP.”.
(8) Omit paragraph 3.
(9) In paragraph 4—
(a) in the first subparagraph for “ESMA” substitute “the Bank of England”;
(b) in the second subparagraph—
(i) for “ESMA”, in each place it occurs, substitute “the Bank of England”;
(ii) omit the final sentence;
(c) in the third subparagraph for the words “Within 180 working days” to “ESMA” substitute “Before the end of the relevant period (see paragraph 4A), the Bank of England”;
(d) in the subparagraph beginning “ESMA shall publish” for “ESMA” substitute “The Bank of England”.
(10) After paragraph 4 insert—
“4A. In paragraph 4 “the relevant period” means—
(a) where the applicant CCP has submitted an application before the end of the period of six months beginning with IP completion day, the period of one year beginning with the first day on which—
(i) the applicant CCP has submitted a complete application, and
(ii) the conditions in paragraph 2(a) and (c) are met, or
(b) in any other case, the period of 180 working days beginning with the first day on which—
(i) the applicant CCP has submitted a complete application, and
(ii) the conditions in paragraph 2(a) and (c) are met.
4B. A CCP must, without undue delay, notify the Bank of England of any material changes affecting the conditions for recognition—
(a) in point (b) of paragraph 2;
(b) in points (a), (c)(ii) and (d) of the first subparagraph of paragraph 2b.”.
(11) In paragraph 5—
(a) for the words from “ESMA shall after consulting” to “five years” substitute “The Bank of England must, as it considers appropriate, review the recognition of a CCP established in a third country.”;
(b) in the third subparagraph—
(i) for “ESMA” substitute, in each place it occurs, “the Bank of England”;
(ii) omit “which shall not exceed 18 months”;
(iii) omit the words from “ESMA may extend” to the end.
(12) In paragraph 6—
(a) in the first subparagraph—
(i) for the words from the beginning to “determining” substitute “The Treasury may by regulations specify”;
(ii) in point (c) for “third-country legal regimes” substitute “legal regimes of other countries”;
(b) omit the second subparagraph.
(13) After paragraph 6 insert—
“6ZA. The Bank of England may provide advice to the Treasury in connection with any regulations made or to be made by the Treasury under paragraph 6.”.
(14) Omit paragraphs 6a and 6b.
(15) In paragraph 7—
(a) for “ESMA” substitute—
(i) in the first place it occurs, “The Bank of England”;
(ii) in each subsequent place it occurs, “the Bank of England”;
(b) in the first subparagraph—
(i) for “shall establish” substitute “must take such steps as it considers appropriate to establish”;
(ii) for “Such arrangements shall specify at least:” substitute “Such arrangements are to specify such matters as the Bank of England considers appropriate. Without limiting the scope to specify matters, such matters may include:”;
(c) in point (a)—
(i) omit “, the central banks of issue referred to in point (f) of paragraph 3”;
(ii) for “Union” substitute “United Kingdom”;
(d) in point (c) for “Union” substitute “United Kingdom”;
(e) in point (d) omit the words from “, including the agreement” to the end;
(f) in point (f) omit the words from “, in accordance with” to the end;
(g) in point (g)—
(i) omit the words from “, the third-country CCP college” to “paragraph 3”;
(ii) for “Union or one of its Member States” substitute “United Kingdom”;
(h) omit point (h);
(i) in the final subparagraph—
(i) for “Commission”, in the first place it occurs, substitute “Treasury”;
(ii) omit the words from “In such a case” to the end.
(16) In paragraph 8—
(a) in the first subparagraph—
(i) for the words “ESMA shall develop draft regulatory technical standards” substitute “the Bank of England may make technical standards”;
(ii) for the words “provide ESMA” substitute “provide the Bank of England”;
(b) omit the second and third subparagraphs.
(17) After paragraph 8 insert—
“9. This Article is subject to Part 6 of the Central Counterparties (Amendment, etc., and Transitional Provision) (EU Exit) Regulations 2018 (which contains transitional provisions).
10. In this Article “competent authority” means a regulatory authority which is responsible for the authorisation and supervision of central counterparties in its territory.”.

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Source: https://www.legislation.gov.uk/ukdsi/2020/9780111194676/regulation/20 (the official version)
Page: https://openlegislation.uk/draft-over-the-counter-derivatives-central-counterparties-and-trade-repositories-amendment-etc-and-transitional-provision-eu-exit-regulations-2020/regulation-20
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.