The Over the Counter Derivatives, Central Counterparties and Trade Repositories (Amendment, etc., and Transitional Provision) (EU Exit) Regulations 2019

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations are made in exercise of the powers in section 8(1) of the European Union (Withdrawal) Act 2018 (c.16) (“the 2018 Act”) in order to address failures of retained EU law to operate effectively (see in particular paragraphs (a) to (e) and (g) of section 8(2) of that Act) and other deficiencies arising from the withdrawal of the United Kingdom from the European Union.

Part 2 amends subordinate legislation. In particular, it amends the Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) Regulations 2013 (S.I. 2013/504) which implemented Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (OJ No. L201, 27.7.2012, p.1) (“the EMIR regulation”).

Part 3 both amends the EMIR regulation and revokes two pieces of EU tertiary legislation made under that regulation.

Part 4 prescribes enforcement provisions relating to trade repositories replacing those in the EMIR regulation which are revoked by Part 2. It also modifies the Financial Services and Markets Act 2000 (c.8) so that the provisions in that Act concerning enforcement may apply, both to those enforcement provisions and those in the EMIR regulation.

Part 5 prescribes transitional provisions applying in respect of certain exemptions from the clearing obligation and the risk-management obligation in the EMIR regulation relating to OTC derivative contracts.

An impact assessment of the effect that this instrument, and other instruments made by HM Treasury under the 2018 Act at or about the same time, will have on the costs of business, the voluntary sector and the public sector is available from HM Treasury, 1 Horse Guards Road, London SW1A 2HQ and is published alongside this instrument at www.legislation.gov.uk.