The Markets in Financial Instruments (Equivalence) (United States of America) (Commodity Futures Trading Commission) Regulations 2024

Explanatory Note

(This note is not part of the Regulations)

These Regulations set out the Treasury’s equivalence determination in respect of the regulatory framework that applies to the list in the Schedule of the designated contract markets and swap execution facilities in the United States of America that are regulated by the Commodity Futures Trading Commission (“CFTC”).The recognition procedure outlined in Article 28 under Regulation (EU) 600/2014 (“the Regulation”) establishes a framework for financial and certain non-financial entities to engage in transactions in derivatives subject to the obligation to be traded on the venues described in Article 28(1) of the Regulation, recognised as regulated to an equivalent standard to that applying in the UK. This procedure, along with the subsequent equivalence decision, serves to enhance the transparency of derivatives trading, particularly in cases where trading occurs on venues located in third countries.

Regulation 2 sets out the Treasury’s determination that the regulatory framework in relation to designated contract markets and swap execution facilities is equivalent to the United Kingdom’s framework.

Regulation 3 revokes an existing equivalence decision of the UK Markets in Financial Instruments Regulation, for the United States of America CFTC. This is to reflect changes in the list of designated contract markets and swap execution facilities since the equivalence decision.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen. A de minimis impact assessment is available from HM Treasury, 1 Horse Guards Road, London, SW1A 2HQ and is published with the Explanatory Memorandum alongside this instrument at www.legislation.gov.uk.