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The UK had championed the open access rule, which allows buyers and sellers of derivatives listed on exchanges across the EU to choose where they clear their contract, rather than be locked into using a clearer.
In the EU, the introduction of open access has been delayed due to the pandemic’s impact on markets. The move has also been opposed by some European exchanges which own clearing houses.
The decision to scrap the rule is a sign of how Brexit is releasing Britain from complying with EU code.
The finance ministry said it has concluded that open access, originally designed to improve cross-border capital markets in the EU, was not suitable if Britain acted on its own.
“The government therefore intends to permanently remove the open access regime for exchange traded derivatives when parliamentary time allows,” the ministry said.
The decision has no bearing on Britain’s support for choice in clearing stocks and off-exchange traded derivatives, which the ministry said will operate as normal.