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EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) Regulations 2013 (S.I. 2013/504). They amend regulation 52, which sets out transitional provisions which deal with the period during which a recognised clearing house is applying for authorisation to act as a central counterparty under Regulation (EU) 648/2012 of the European Parliament and of the Council on OTC derivatives, central counterparties and trade repositories (OJ No L 201, 27.7.2012, p1), and is waiting for its application to be determined.

The amendment provides that while such an application made by a recognised clearing house which is established outside the UK is awaiting determination, the clearing house will not be under a duty to maintain a recovery plan as would otherwise be required by paragraph 23A of the Schedule to the Financial Services and Markets Act 2000 (Recognition Requirements for Investment Exchanges and Clearing Houses) Regulations 2001 (S.I. 2001/995).

An impact assessment has not been produced for this instrument as no impact on the costs of business or the voluntary sector is foreseen.