Revocation of retained EU law Transitional amendments Amendments to the Markets in Financial Instruments Regulation (MiFIR) and the European Market Infrastructure Regulation (EMIR) 7. Giving the FCA a permanent power to modify or suspend the DTO
In December 2020, the FCA announced that it would use its TTP to modify the DTO. The FCA used the TTP to allow UK firms, EU firms using the UK’s temporary permissions regime and branches of overseas firms in the UK to use EU venues when trading with an EU client who does not have access to a venue that both the UK and EU have granted equivalence to. This has limited disruption for market participants and prevented liquidity fragmentation that would have arisen from conflicting UK and EU DTOs after the end of the transition period.
	The Act gives the FCA a new, permanent power to modify or suspend the DTO, subject to HM Treasury approval, to prevent or mitigate disruption to markets. This power will allow the FCA to make changes to the DTO in respect of which counterparties it is imposed upon; which derivatives come within its scope; and the venues on which transactions must be concluded by counterparties in scope of the DTO.