The Financial Conduct Authority published its explanatory statement under Article 28a(9) of UK MiFIR confirming that its direction modifying the UK derivatives trading obligation (DTO) remains in effect for the six-month period ending 30 June 2026. The direction permits firms subject to the UK DTO, when trading with or on behalf of European Union clients subject to the EU DTO, to execute those trades on EU trading venues provided specified conditions are met, including taking reasonable steps to be satisfied the client does not have arrangements to execute the trade on a venue to which both the UK and EU have granted equivalence. The FCA considers the direction remains necessary to prevent or mitigate disruption arising from the conflict of law between the EU and UK DTOs in the absence of mutual equivalence, particularly for branches of EU firms in the UK, and that maintaining it continues to advance its operational objectives under section 1B(3) of the Financial Services and Markets Act 2000. A further review will be conducted at the end of the next six-month period and, if the direction remains in force, the FCA will issue a new statement.
Financial Conduct Authority 2026-01-02
Financial Conduct Authority confirms UK derivatives trading obligation direction allowing EU venue execution remains in force through 30 June 2026
The Financial Conduct Authority confirmed that its direction modifying the UK derivatives trading obligation (DTO) will remain effective until 30 June 2026, allowing firms to trade on EU venues under specific conditions to mitigate disruption from conflicting EU and UK DTOs. A review will occur at the end of the period, with a new statement issued if the direction continues.