Consultation closed
25/08/2021
PS21/13: LIBOR transition and the derivatives trading obligation
We have modified the list of derivatives subject to the derivates trading obligation (DTO) in line with Articles 28 and 32 of UK MiFIR.
Why we are changing
We are making these changes in light of the interest rate benchmark reform and the recent Bank of England policy statement modifying the derivatives clearing obligation in line with Article 5 of UK EMIR.
The amendments 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
Who this applies to
This affects:
- financial counterparties
- non-financial counterparties that are, or may become, subject to the DTO
It will be of interest to:
- trading venues, including third country trading venues considered equivalent for the purposes of the DTO
- central counterparties (CCPs)
Next steps
These changes will come into force on 20 December 2021.