Central Counterparty (CCP) policy and rules

Relevant to UK CCPs and systemic third country CCPs.

In this section

Domestic statutory framework

The UK’s domestic statutory framework for CCPs is agreed by Parliament. The framework is in the process of revision through the FSMA 2023 framework that largely came into effect at the start of 2024, including giving the Bank the power to make binding firm-facing rules over CCPs and repealing relevant elements of the domestic statutory framework. The list below will be updated as relevant as this process takes place.

Recognised clearing houses and central counterparties (CCPs) are regulated under Part 18 of FSMA 2000, and are subject to the recognition requirement regulations. 

Recognised clearing houses that are CCPs must comply with the requirements and obligations set out in Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (European Market Infrastructure Regulation (EMIR)). EMIR has been onshored and amended by the instruments in the right hand column.

As noted above, this framework is in the process of revision.
CCPs must report their securities financing transactions under the Securities Financing Transactions Regulation. 

Part VII (Financial Markets and Insolvency) of the Companies Act 1989 also imposes certain obligations on recognised bodies (ie recognised CSD and recognised clearing house), including the requirement to give the Bank of England notice of any proposal to amend, revoke or add to their default rules, and report on the completion of default procedures.
There are two main Regulations made by HMT which make amendments to the UK settlement finality regime. CCPs may apply for designation under the settlement finality regime.

 
The Financial Collateral Arrangements Directive (FCAD) was implemented through the Financial Collateral Arrangements (No. 2) Regulations 2003 (FCAR). The FCAR aims to streamline the use of financial collateral in the UK, simplifying enforcement procedures and addressing potential conflicts with insolvency law. It applies to both security financial collateral arrangements (where security is provided over collateral) and title transfer arrangements (where ownership is transferred with a promise of return).

Bank of England rules

The Bank has made rules that set out the more detailed elements of the regulatory framework for CCPs.

The Bank has published binding rules for CCPs that are Recognised Clearing Houses, that cover:

  • Appointment and resignation of key individuals
  • Extent of duty and notice requirements for proposal to make regulatory provisions
  • Fees in respect of expert reports
  • Notification of incidents 
The Bank has published binding rules on the detailed specification of the EMIR Article 9 reporting requirement.

Other Bank of England rules

The Bank has also made rules that set out obligations on other market participants.

The Bank has a public register of classes of OTC derivatives subject to the clearing obligation. 

Bank of England guidance

The Bank may set out its expectations and publish guidance on the interpretation of regulatory requirements for FMIs.

The Bank’s approach to supervising CCPs is covered in its guidance on the Bank's approach to FMI supervision 
The Bank has published a supervisory statement that sets out the Bank’s supervisory approach to operational resilience. 
The Bank has published a supervisory statement that sets out the Bank’s supervisory approach to outsourcing and third party risk management. 
The Bank has published a document setting out its supervisory approach to ESMA’s Guidelines and Recommendations on CCP interoperability arrangements.
The Bank has published guidance on trade repository data collections, providing further detail on CCPs’ EMIR Article 9 reporting requirement, and the requirements for CCPs to report securities financing transactions. 
The Bank and PRA have published a Statement of Policy on their approach to the interpretation of EU guidelines and recommendations after the UK’s withdrawal from the EU.

Statements of Policy

The Bank is required in certain cases to publish statements of policy that set out how it will exercise its statutory powers over FMIs.

The Bank has published a Statement of Policy on its approach to enforcement. 
The Bank has published a Statement of Policy on its approach to giving directions to qualifying parent undertakings of CCPs that are recognised clearing houses.
The Bank has published a Statement of Policy on its approach to statutory notice decisions for use of its requirements powers.

International standards

The Committee on Payments and Market Infrastructures (CPMI) and the International Organisation of Securities Commissions (IOSCO) set out international standards for financial market infrastructures (FMIs), including central counterparties (CCPs). These standards are not binding, but are implemented domestically through the domestic statutory framework and through Bank rules.

The Principles for financial market infrastructures are the international standards for financial market infrastructures. They are part of a set of 12 key standards that the international community considers essential to strengthening and preserving financial stability. 
The guidance on ‘Recovery of Financial Market Infrastructures’ sets out how FMIs such as CCPs should develop plans to enable them to recover from threats to their viability and financial strength, along with providing guidance to relevant authorities in carrying out their responsibilities associated with the development and implementation of recovery plans. 
The guidance on ‘Resilience of central counterparties (CCPs)’ aims to improve CCPs' resilience by providing guidance on the principles and key considerations in the PFMI regarding financial risk management for CCPs.
The guidance on ‘Cyber resilience for financial market infrastructures’ sets out the preparations and measures that FMIs should undertake to enhance their cyber resilience capabilities in order to limit the risks that cyber threats pose to financial stability.
This statement clarifies the expectations of the CPMI and IOSCO with respect to CCP clearing of deliverable FX instruments and the associated models for effecting their settlement. 
This framework sets out the quantitative data that CCPs should publicly disclose regularly.
These principles promote consistent disclosure of information by FMIs and consistent assessments by international financial institutions and national authorities.
The BCBS-CPMI-IOSCO report on Transparency and responsiveness of initial margin in centrally cleared markets sets out ten final policy proposals which aim to increase the resilience of the centrally cleared market ecosystem in times of market stress. 

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This page was last updated 26 June 2025