PS21/13: LIBOR transition and the derivatives trading obligation

Read PS21/13 (PDF)[2]

Why we are changing

We are making these changes in light of the interest rate benchmark reform and the recent Bank of England policy statement[3] modifying the derivatives clearing obligation in line with Article 5 of UK EMIR.

The amendments support our strategic objective of ensuring that relevant markets function well – in this instance the wholesale market for OTC derivatives and the other markets that depend on them. They also advance our objective of protecting financial markets, by ensuring that the most liquid derivatives are traded in a way which supports market integrity and financial stability.

Who this applies to

Who this applies to   

This affects: 

• financial counterparties 
• non-financial counterparties that are, or may become, subject to the DTO 

It will be of interest to:  

• trading venues, including third country trading venues considered equivalent for the purposes of the DTO 
• central counterparties (CCPs) 

Next steps

These changes will come into force on 20 December 2021.