PS23/19: Margin requirements for non-centrally cleared derivatives: Amendments to BTS 2016/2251

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Policy Statement

Our final policy and feedback to responses following our joint consultation paper with the PRA.

Read PS23/19

What we are changing 

This PS contains amendments to the Binding Technical Standards (BTS) 2016/2251 extending the temporary exemptions for single-stock equity options and index options from the UK bilateral margining requirements until 4 January 2026. It also contains confirmation of the approach to pre-approval of bilateral initial margin models.   

Who this is for 

The publication is relevant to PRA-authorised banks, building societies and PRA-designated investment firms in scope of the margin requirements under the European Market Infrastructure Regulation (UK EMIR). It is also relevant to all FCA solo-regulated entities and non-financial counterparties in scope of the margin requirements under UK EMIR. 

Next steps 

The amendments to the BTS take effect on 18 December 2023, which is when the final technical standards instrument by the PRA and FCA comes into force. 

Unless otherwise stated in the PS, any remaining references to EU or EU-derived legislation refer to the version of that legislation which forms part of retained EU law. 


Under UK EMIR, firms are required to exchange initial and variation margin on non-centrally cleared OTC derivatives. 

Single-stock equity options and index options are exempted from these requirements until 4 January 2024. In July 2023, we consulted (CP23/16) on extending these temporary exemptions until 4 January 2026 so the PRA and FCA can undertake deeper analysis to develop a permanent UK framework for these products. 

Industry had also asked the PRA to clarify the UK’s approach to supervisory pre-approval of initial margin models. Our consultation aimed to provide clarity to industry.