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CCPs in the UK are subject to the Regulation on OTC Derivatives, central counterparties and trade repositories (EMIR), which entered into force across the EU in August 2012. During 2013, if a CCP regulator has not yet implemented the CPSS-IOSCO Principles for Financial Market Infrastructures (PFMIs), but has publicly stated that it is working towards implementing these principles, the CCPs that are regulated by the CCP regulator may be treated as QCCPs. However, a CCP regulator may still declare a specific CCP non-qualifying.'
The FSA is working towards implementing the PFMIs. The FSA reserves the right to declare a specific CCP to be non-qualifying. However, currently all recognised clearing houses based in the UK and prudentially supervised by the FSA may be treated as QCCPs for a transitional period that, unless extended, expires on 31 December 2013.
EMIR follows the recommendations developed by CPSS-IOSCO PFMIs as established on 16 April 2012, and directs the European Securities and Markets Authority (ESMA) to consider both the existing principles and their future developments when drawing up or revising the regulatory technical standards, guidelines and recommendations foreseen in EMIR (see recital 90).
The FSA’s supervision is currently focused on preparing domestic CCPs to meet the requirements of EMIR, and it anticipates that UK CCPs will apply for authorisation under EMIR during 2013. From 1 April 2013, responsibility for the supervision of CCPs will pass to the Bank of England. The Bank of England has made clear in its recent document, 'The Bank of England’s approach to the supervision of financial market infrastructures', that "the UK regulatory framework, and requirements and rules set within it, will be consistent with the minimum standards in the Principles”.