European Union: Draft UK Post-Brexit Legislation To Onshore Trade Repositories' Obligations Published

On October 5, 2018, HM Treasury published a draft of the Trade Repositories (Amendment and Transitional Provision) (EU Exit) Regulations 2018, along with explanatory information. The draft Regulations are primarily relevant for trade repositories in both the U.K. and the EU that are currently registered with and supervised by ESMA and that are planning to continue servicing the U.K. market after the U.K.'s exit from the EU on March 29, 2019.

The draft Regulations have been prepared to ensure that the U.K.'s legal framework for reporting of derivatives trades to trade repositories will continue to operate effectively after exit day. The draft Regulations amend the version of the European Markets Infrastructure Regulation that will be retained on Brexit. The draft Regulations transfer to the FCA the functions carried out by ESMA for the registration of trade repositories. They also establish: (i) a temporary registration regime that will enable U.K. and EU trade repositories that wish to establish a new U.K. legal entity to benefit—on complying with certain requirements—from temporary registration while the FCA considers their application; and (ii) a conversion regime that will allow U.K. trade repositories that are currently registered with ESMA to be registered as authorized U.K. trade repositories by the FCA from exit day.

HM Treasury intends to lay the draft Regulations before Parliament in the autumn. Further draft legislation on trade repository requirements and supervision of trade repositories is also expected to be published by HM Treasury later this year.

The draft Regulations are available at: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/746257/Trade
_Repositories__Amendmentand_Transitional_Provisions___EU_Exit__Regulations18.pdf  and the

explanatory information is available at: https://www.gov.uk/government/publications/draft-trade-repositories-amendment-and-transitional-provision-eu-exit-regulations-2018/trade-repositories-amendment-and-transitional-provision-eu-exit-regulations-2018-explanatory-information.