CP21/22: LIBOR transition and the derivatives trading obligation

Consultation opens
14/07/2021
14/07/2021
Consultation closes
25/08/2021

We are consulting on proposals to modify the list of derivatives subject to the Derivatives Trading Obligation (DTO) in line with Articles 28 and 32 of UK MiFIR.

Read CP21/22 (PDF)

Why we are consulting 

We are reviewing the DTO in light of the interest rate benchmark reform and the recent Bank of England consultation to modify the derivatives clearing obligation in line with Article 5 of UK EMIR. The proposals set out in this Consultation Paper (CP) support our strategic objective of ensuring that relevant markets function well – in this instance the wholesale market for OTC derivatives and the other markets that depend on them. They also advance our objective of protecting financial markets, by ensuring that the most liquid derivatives are traded in a way which supports market integrity and financial stability.

Who this applies to

This consultation should be read by:

  • financial counterparties
  • certain non-financial counterparties as specified in Article 28 of UK MiFIR

Who else will be interested in this consultation: 

  • trading venues, including third country trading venues considered equivalent for the purposes of the DTO
  • central counterparties (CCPs)

Next steps

Online response form

We are asking for comments on this CP by 25 August 2021.  
You can send them to us at [email protected] or by using our online response form. 

Or in writing to:
Priya Kotadia & John Wu, 
Trading and Wholesale Conduct Policy 
Financial Conduct Authority 
12 Endeavour Square 
London E20 1JN 
Telephone: 020 7066 1317 or 020 7066 8720