August 9, 2020

Volume X, Number 222

August 07, 2020

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August 06, 2020

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UK Parliament Considers Draft Brexit Statutory Instrument Relating to EMIR

On March 24, a draft copy of the Over the Counter Derivatives, Central Counterparties and Trade Repositories (Amendment etc. and Transitional Provision) (EU Exit) Regulations 2020 (the Regulations) was published and laid before Parliament with an explanatory memorandum.

The Regulations are being made to ensure a coherent and functioning financial services regulatory framework for third-country central counterparties (CCPs) in the United Kingdom post-Brexit. It performs this function by addressing deficiencies in retained EU law in the European Market Infrastructure Regulation (EMIR), as amended by Regulation (EU) No. 2019/2099 (EMIR Supervision).

The key change under these Regulations is the expansion of the UK’s existing CCP supervisory framework to cover third-country CCPs. This will ensure that the Bank of England (BoE) is able to undertake the relevant supervisory responsibilities required under EMIR. To maintain continuity between EMIR and EMIR Supervision post-Brexit, the draft Regulations would update the UK legislation so that the BoE can consider third-country CCP applications before the end of the Brexit transition period, which is expected to be at the end of December 31, 2020.

The Regulations do not make any changes to the regulatory or supervisory framework for firms based in the UK.

The draft Regulations are available here and the explanatory memorandum is available here.

©2020 Katten Muchin Rosenman LLPNational Law Review, Volume X, Number 87

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About this Author

John Ahern, Financial Attorney, London, Katten Law Firm
Partner

John Ahern, partner at Katten Muchin Rosenman UK LLP and head of the London Financial Services group, focuses his practice on banking, financial services, UK and European financial markets, and related regulations. His background in private practice and as in-house counsel at a global investment bank provides him with perspective on the unique regulatory issues facing the wholesale and private banking sectors. John advises multilateral trading facilities, broker-dealers and banks on trading, clearing and settlement as well as custody of securities—both physical and...

+44 (0) 20 7770 5253
Carolyn H. Jackson, International Attorney, Katten Muchin law firm
Partner

Carolyn Jackson is a partner in Katten Muchin Rosenman UK LLP and is a Registered Foreign Lawyer. She provides US financial regulatory legal advice to a broad range of market participants, including commercial banks, investment banks, investment managers, broker-dealers, electronic trading platforms, clearinghouses, trade associations and over-the-counter derivatives service providers.

Carolyn guides clients in the structuring and offering of complex securities, commodities and derivatives transactions and in complying with US securities and commodities laws and regulations. 

+44 0 20 7776 7625
Nathaniel Lalone, Katten Muchin Law Firm, Financial Institutions Attorney
Senior Associate

Nathaniel Lalone, a partner at Katten Muchin Rosenman UK LLP, has a broad range of experience in the regulation of financial products and financial markets, and frequently provides regulatory and compliance advice to trading venues, clearing houses and buy-side firms active in the over-the-counter (OTC) derivatives, futures and securities markets. He is actively involved in advising clients on the implementation of MiFID 2 and MiFIR in the European Union as well as the international reach of US financial services regulation. He also has significant experience with structuring...

+44 0 20 7776 7629
Neil Robson, private equity fund managers counselor, Katten Law Firm, London
Partner

Neil Robson, a regulatory and compliance partner with Katten Muchin Rosenman LLP, focuses his practice on counseling hedge and private equity fund managers and other investment advisers on operational, regulatory and compliance issues. He regularly addresses Financial Conduct Authority (FCA) and EU authorization and compliance under both the EU Alternative Investment Fund Managers Directive (AIFM Directive) and MiFID, cross-border issues in the financial services sector, market abuse, anti-money laundering and regulatory capital requirements, formations and buyouts of...

44-0-20-7776-7666