UK Conduct Regulator Statement on Open Access Regime for Exchange-Traded Derivatives | Shearman & Sterling LLP

The U.K. Financial Conduct Authority has published an updated statement on the open access regime for trading and clearing exchange-traded derivatives. The Markets in Financial Instruments Regulation provided a temporary opt-out from the open access requirements for trading venues and clearing houses in relation to ETDs. The opt-out was due to expire on July 3, 2020. However, in light of COVID-19, the EU has announced it is postponing the implementation of the open access regime for ETDs until July 3, 2021. The FCA’s statement acknowledges the EU’s postponement of the regime and states that the amended open access regime will form part of retained EU law that will be transposed by the U.K. post-Brexit and will continue to apply in the U.K. after the end of the transition period.
 
The MiFIR open access provisions have been the subject of ongoing debate at EU level. In April 2020, the Croatian Presidency called for a delay to the implementation of the open access regime for ETDs on the grounds that CCPs need time to comply with the new CCP recovery and resolution framework and the simultaneous introduction of open access requirements may be operationally risky, particularly in the current climate and in light of other concerns regarding interoperability arrangements between CCPs. In June 2020, the European Securities and Markets Authority published a statement noting that trading venues and CCPs receiving a request for access in respect of instruments to which the open access regime does already apply would be entitled to refuse the request on the grounds that granting access would lead to unmanageable risks in light of COVID-19.
 
View the FCA’s statement on the open access regime for ETDs.
 
View details of the EU’s postponement of the open access regime for ETDs.
 
View details of ESMA’s statement on open access requests for ETDs.

View details of the Croatian Presidency’s non-paper on the MiFIR open access regime and interoperability arrangements.

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