The Bank of England (BoE) announced extension of the User Acceptance Testing (UAT) Window for statistical reporting within BEEDS until January 21, 2022. Entities that require access to BEEDS portal should ensure submission of the requisite information to the BEEDS team by December 10, 2021. BoE also published a Policy Statement with final policy on the proposal to add Overnight Index Swaps (OIS) that reference TONA to the scope of contracts subject to the derivatives clearing obligation. The final policy maintains the proposal in the September consultation paper on amendment to BTS 2015/2205, to add TONA OIS contracts with an original maturity between 7 days and 30 years to the clearing obligation. However, BoE has amended the date on which this change will come into force from December 06, 2021 to January 31, 2022.
The final policy of BoE has been implemented via amendments to the Commission Delegated Regulation 2015/2205 supplementing the Regulation No 648/2012 on OTC derivatives, central counterparties, and trade repositories with regard to the regulatory technical standards on the clearing obligation (referred to as the Binding Technical Standards, or BTS, 2015/2205). The Policy Statement also provides feedback from BoE to the responses to the September consultation paper. The Policy Statement is relevant to financial and non-financial counterparties that are subject to clearing obligation under the European Market Infrastructure Regulation (EMIR) and to central counterparties. Where the final rules differ from the draft in the September consultation paper in a way which is, in the opinion of BoE, significant, the Financial Services and Markets Act 2000 (FSMA) requires BoE to publish details of the difference together with a cost-benefit analysis. The policy set out in this Policy Statement has been designed in the context of the Brexit and the end of the associated transition period. BoE will continue to monitor developments in the USD interest rate derivatives market and, where possible, coordinate with the Commodity Futures Trading Commission on changes to its respective clearing obligations. BoE expects to consult on changes to the clearing obligation related to the contact types referencing USD LIBOR in 2022.
- Statistical Notice 2021/15
- Policy Statement on Clearing Obligation
- Proposal on Changes to BTS 2015/2205
Keywords: Europe, UK, Banking, Statistical Reporting, Statistical Notice, Timeline Extension, BEEDS, BEEDS Testing, Derivatives, Clearing Obligation, TONA, OIS, Benchmark Reforms, LIBOR, Swaps, Overnight Index Swaps, CCPs, BoE
ESG and climate expert for P&C insurance; IFRS 17 specialist and chartered accountant; extensive experience in both life and non-life insurance, with focus on capital management, financial performance, and financial reporting.
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