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Author: Karen Cooper

UK MiFID: FCA policy statement confirms extended scope of DTO and post-trade risk reduction services

On 3 April 2025, the FCA published its policy statement on instruments in scope of the UK derivatives trading obligation (DTO) and the post-trade risk reduction services (PTRRS) which are exempt from the DTO, transparency and certain other requirements. The FCA’s final rules implement the proposals made in the July 2024 consultation with minimal changes reflecting feedback received. These changes include a reduction of the OIS (overnight index swaps on the US risk-free rate SOFR (Secured Overnight Financing Rate) with a 12-year tenor which are brought into scope of the DTO.