Overview
The Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) issued this Policy Statement (PS23/25) to provide feedback on responses to their earlier consultation. The document also introduces final policy changes regarding margin requirements for non-centrally cleared derivatives within the UK’s onshored Binding Technical Standard (BTS 2016/2251).
Purpose of the Statement
This policy statement aims to ensure that margin requirements remain appropriate and proportionate. It addresses industry feedback and clarifies how counterparties should apply margining rules when engaging in non-centrally cleared derivative transactions.
Key Amendments
- Updates to BTS 2016/2251 to align with current market practices and regulatory objectives.
- Adjustments in initial and variation margin calculation methods.
- Clarifications on scope, exemptions, and applicable thresholds for counterparties.
- Technical corrections and updates to references related to other regulatory frameworks.
Implementation and Next Steps
The amended BTS takes effect in early 2026, following publication on the FCA and PRA websites. The regulators encourage firms to review internal processes and ensure compliance ahead of the effective date.
Background
The non-centrally cleared derivatives market is critical to financial stability but carries counterparty risk. By refining these margin requirements, UK regulators continue to support market resilience while maintaining consistency with global standards.
“The changes are designed to maintain a level playing field while safeguarding the soundness of the financial system,” the PRA stated.
Author’s Summary:
The PRA and FCA refined UK margin regulations for non-centrally cleared derivatives to strengthen market stability and align technical standards with current global practices.
More News
- Why Ryan Serhant Didn't Care If 'Owning Manhattan' Had No Real Estate Deals
- Accidental adjective - meaning and examples
- Weather Alerts for Listowel and Northern Perth
- [ACCIDENTAL | definition in the Cambridge English Dictionary]
- Sanirajak sex offender pleads guilty to 2 new
- EXCL: Ryan Serhant on His Emotional 'Owning Manhattan' Breakdown
- accidentally adverb - Definition, pictures, pronunciation
- McCoskrie reviews the Listener’s anti-right ‘special report’ and finds its ‘accidental truths’
- French Translation of OFFENDER Collins
- Accidental Maybe 702 | Abstraction Paris Parfums