Financial Conduct Authority (FCA), provided special permissions and amended some of its rules to prevent major disruptions arising from Brexit.
Prior to this, ESMA, the European regulatory body confirmed that any European firm has to trade under EU rules or at an equivalent rule set. The UK regulations prior to this did not cover the article 28 of the EU regulation. Article 28 covers regulation on derivatives trading and is known as Derivatives Trading Obligation (DTO). New change permits the UK authorities to adopt article 28 and be an equivalent regulation as the EU.
The change came on 31st December 2020, just in time for Brexit. The European derivatives market is valued at more than 50 trillion USD. If the change did not come on time, EU firms will have stopped their operations in the UK.
