UK EMIR: PRA and FCA propose amendments to margin requirements for non-centrally cleared derivatives

Article summary

The Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) have jointly published consultation paper proposing amendments to the UK version of Commission Delegated Regulation (EU) 2016/2251 and the regulatory technical standards for risk-mitigation techniques for over-the-counter (OTC) derivative contracts not cleared by a central counterparty (the Binding Technical Standards (BTS) 2016/2251), which supplements Article 11(15) of the UK European Market Infrastructure Regulation (EMIR). Through this consultation, the regulators aim to understand the impact of its proposals on firms that engage in OTC derivatives and seek to update margin requirements for non-centrally cleared derivatives. Responses are sought by 27 June 2025, with a Policy Statement and amended BTS expected in the second half of 2025. The proposed exemption for equity and index options would come into force when the current temporary exemption expires on 4 January 2026.