The Financial Services and Markets Act 2023 (Benchmarks and Capital Requirements) (Amendment) Regulations 2023
Regulation 2 of these Regulations amends Article 384 of Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012, which requires certain financial institutions to calculate a particular type of capital requirements in accordance with a specific formula. Article 384(1) defines the total counterparty credit risk exposure value (“EADi total”) for the purposes of that formula. Regulation 2 amends the definition of EADi total by inserting a discount factor which reduces the amount of capital that small and medium-sized firms are required to hold for their derivative activities under Regulation (EU) No. 575/2013.
Lifecycle
Department
Made
19 Dec 2023
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Comes into force
TBC
Enabling power
In accordance with sections 3(10) and 84(3) of the Financial Services and Markets Act 2023, a draft of these Regulations has been laid before, and approved by a resolution of, each House of Parliament.
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