Brexit—derivatives

Brexit—derivatives

This Overview is a guide to the Financial Services content within the Brexit―derivatives subtopic, with links to appropriate materials.

Brexit and derivatives

Brexit impacts on many aspects of the derivatives markets, including:

•
derivatives clearing requirements and margin requirements for uncleared derivatives
•
central counterparties (CCPs)
•
derivatives trading venues
•
derivatives reporting
•
passporting, and equivalence

For high-level guidance on the impact of Brexit on derivatives, see Practice Note: Brexit―impact on finance transactions [Archived]―Key issues for derivatives transactions.

Brexit―UK onshoring regime

HM Treasury established a process under the European Union (Withdrawal) Act 2018 (EU(W)A 2018) for domesticating EU law to ensure legal continuity following the UK’s exit from the EU. EU(W)A 2018 was subsequently amended by the European Union (Withdrawal Agreement) Act 2020 (EU(WA)A

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Latest Financial Services News

BoE recalibration of indexed long-term repo facility for transition to repo-led framework

The Bank of England (BoE) has published a Discussion Paper outlining plans to recalibrate the Indexed Long-Term Repo (ILTR) facility as part of its transition to a demand-driven, repo-led framework for supplying reserves. In light of this, the Prudential Regulation Authority (PRA) has issued a statement encouraging firms to engage with the proposals and test their operational readiness for accessing the ILTR. Changes to the ILTR are set to take effect in 2025.

EBA consults on updated technical standards for material changes to internal ratings based approach

The European Banking Authority (EBA) has published a consultation on draft regulatory technical standards (RTS) concerning the assessment of material model changes and extensions to the Internal Ratings Based (IRB) approach. The proposed updates aim to align the existing RTS with amendments introduced by the third Capital Requirements Regulation (Regulation (EU) 2024/1623) (CRR3) and enhance the supervisory effectiveness of the model change approval process. Responses are sought by 10 March 2025. The EBA will hold a public hearing on 15 January 2025, and all contributions received during the consultation will be published unless requested otherwise.

FCDO announces new anti-corruption champion

The Foreign, Commonwealth & Development Office (FCDO) has announced the appointment of Baroness Margaret Hodge as the UK's new Anti-Corruption Champion, alongside a £36m funding extension for the National Crime Agency's (NCA) International Corruption Unit. New sanctions have been imposed under various regimes targeting the illicit gold trade, with asset freezes applied to five individuals including British-Kenyan gold smuggler Kamlesh Pattni and associates. The government has also committed to developing a comprehensive anti-corruption strategy in 2025. These measures follow a recent NCA operation disrupting Russian money laundering networks, underscoring the UK's commitment to combating corruption and illicit finance both domestically and internationally.

EBA publishes final standards on long and short positions

The European Banking Authority (EBA) has published a Final Report on draft Regulatory Technical Standards (RTS) detailing methods for identifying main risk drivers and determining long or short positions in transactions. The draft RTS, propose a general method based on sensitivities from the market risk standardised approach (FRTB-SA) or add-ons from the standardised approach for counterparty credit risk (SA-CCR). A simplified method for relatively simple instruments such as fixed- and floating-rate bonds, stocks, forwards, futures, simple swaps and plain vanilla options is also included.

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