UK to Remove Open Access Regime for Exchange-Traded Derivatives06/05/2021The U.K. Government has announced that it will permanently remove the open access regime for exchange-traded derivatives. The regime, established under the EU Markets in Financial Instruments Regulation and onshored into U.K. laws in preparation for the end of the Brexit transitional period, requires a trading venue to provide open and non-discriminatory access to a CCP, with a reciprocal requirement for CCPs to provide access for trading venues, when clearing transferable securities, money market instruments and ETDs. In the EU, a temporary opt-out from the regime was made available and then extended for trading venues and CCPs in relation to ETDs, but that is due to expire on July 3, 2021 (having been extended for a period of one year due to difficulties surrounding COVID-19).
The U.K. had originally said the open access regime would form part of EU retained law after Brexit. However, on December 30, 2020, HM Treasury announced that it would conduct a review of the regime for ETDs to assess its suitability for U.K. markets. HM Treasury has now concluded that the regime is not suitable in a U.K.-only context and it will be removed from the U.K. statute book when parliamentary time allows. The open access regime will continue to apply for equity and over-the-counter derivatives markets.
View the U.K. Government's announcement on the open access regime.
View details of the EU's Postponement of Open Access Provisions for Exchange-Traded Derivatives.
View details of the FCA's Statement on Open Access Regime for Exchange-Traded Derivatives.
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