As a result of the UK’s withdrawal from the European Union, the Bank of England acquired new powers to recognise non-UK central counterparties (‘incoming CCPs’) and non-UK central securities depositories (‘incoming CSDs’).
Currently incoming CCPs can provide services in the UK under a temporary recognition regime. By the time this expires, incoming CCPs will need to be recognised by the Bank under the on-shored European Market Infrastructure Regulation. In June, the Bank set out its final policy for ‘tiering’ incoming CCPs according to the level of risk they could pose to UK financial stability. From 30 June to 15 September the Bank consulted on a proposed fee regime for incoming CCPs that reflects the tiering approach and would apply after CCPs have been recognised.
Incoming CSDs also currently provide services in the UK under a temporary regime, until such point as they have been recognised by the Bank. The Bank also consulted on a fee regime for incoming CSDs from 30 June to 15 September, which reflects the level of risk to UK financial stability posed by the firms.
Following the conclusion of the two consultations, the Bank confirms its final policy on fees for both incoming CCPs and CSDs. This completes the policy framework to enable the Bank to recognise these types of firms, establishing the Bank’s steady-state regulation of the financial market infrastructure landscape in the context of EU withdrawal.
The implementation date for the Bank’s final policy incoming CCP and CSD fees is Thursday 1 December 2022, in line with the implementation date for its policy on tiering and comparable compliance in respect of incoming CCPs.
The Bank of England’s fees regime for incoming central counterparties
The Bank of England’s fees regime for incoming central securities depositories