Further update to ancillary activities exemption for commodity derivatives (2024-2025)

We previously set out how firms could determine their use of the ancillary activities exemption for 2023-24.

Following Treasury’s decision to put back the application of relevant changes to the ancillary activities test to 1 January 2025 and as confirmed in paragraph 7.6 of consultation CP23/27, we will continue to apply the approach. This will enable firms to continue using the ancillary activities exemption for 2024-2025 where they were able to rely on the exemption for 2022-2023 based on trading relating to the last published information (which relates to 2018 to 2020) on the overall size of the market.

Our approach also maintains the additional flexibility for firms to have regard to their daily trading activity of the previous 3 years (2021-2023) for the purposes of continuing to rely on the exemption.