The Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) published a joint policy statement finalising changes to the UK EMIR Binding Technical Standards on margin requirements for non-centrally cleared derivatives. The amendments introduce an indefinite exemption from UK bilateral margining for single-stock equity options and index options, remove the requirement to exchange initial margin (IM) on outstanding legacy contracts where a counterparty subsequently falls below the in-scope thresholds, and allow limited alignment with third-country threshold assessment calculation periods and IM entry-into-scope dates in certain cross-border transactions. The amendments take effect on 27 November 2025. The final rules apply to PRA-authorised banks, building societies and PRA-designated investment firms, as well as FCA solo-regulated entities and non-financial counterparties in scope of the UK EMIR margin framework. In finalising the cross-border alignment measure, the PRA and FCA confirmed it applies only where a UK counterparty transacts with a third-country counterparty that is subject to margin requirements in its home jurisdiction, and does not extend to UK firms that are also subject to third-country margin requirements or to non-UK counterparties indirectly caught by another jurisdiction’s rules. The regulators made minor drafting changes to the legal instruments, including changes to Article 28(1a) and an FCA amendment to align with the PRA instrument by adding language on “the option to release initial margin already collected”, and noted that additional product exemptions proposed by a respondent were outside the scope of the consultation.
Prudential Regulation Authority 2025-11-27
Prudential Regulation Authority and Financial Conduct Authority finalise UK EMIR bilateral margin amendments including indefinite exemption for equity options
The Prudential Regulation Authority and Financial Conduct Authority have finalized changes to the UK EMIR Binding Technical Standards on margin requirements for non-centrally cleared derivatives. Key amendments include an indefinite exemption from UK bilateral margining for single-stock equity and index options, and removal of the initial margin requirement on certain legacy contracts. Effective 27 November 2025, the rules apply to PRA-authorised banks, building societies, PRA-designated investment firms, FCA solo-regulated entities, and non-financial counterparties within the UK EMIR margin framework.