New regulatory powers Financial market infrastructure: general rules and requirements Regulation of CCPs and CSDs by the Bank of England Bank of England rule-making powers
At present, the Bank has limited powers to set direct regulatory requirements on these firms as these requirements sit in retained EU law. The most relevant pieces of retained EU law in this area are the European Market Infrastructure Regulation (EMIR) and the Central Securities Depositories Regulation (CSDR). These regulations implemented international standards within EU law and set out a comprehensive regime for these entities.
	The Act introduces a general rule-making power for the Bank over CCPs and CSDs so that it can take on primary responsibility for setting regulatory requirements for these entities. This sits alongside an adjusted set of statutory objectives and principles to ensure that the Bank considers the appropriate public policy objectives when exercising this power. The Act updates the framework that sits around the power in order to strengthen the Bank’s accountability to Parliament, its relationship with HM Treasury and its engagement with stakeholders. The Act also provides the Bank with a power to impose requirements on individual CCPs and CSDs (which is similar to the FCA’s and the PRA’s ability to impose requirements on the firms they regulate under sections 55L and 55M of FSMA 2000).
	The Act also establishes the concept of a "systemic third country CCP". It enables the Bank to establish whether an overseas CCP is a systemic third country CCP, in accordance with the criteria of general application that HM Treasury has set out in secondary legislation, as well as any detailed provisions that the Bank sets out in a statement of policy which specify further how the HM Treasury criteria will be applied. HM Treasury intends for the criteria it sets out in secondary legislation on what constitutes a systemic third country CCP to be high-level and not more detailed or prescriptive than the current framework set out in Article 25(2a) of UK EMIR. The Bank will then be able to set out more detailed considerations in a statement of policy as it does now. This could include, where appropriate, more detailed quantitative or qualitative criteria. This would allow the Bank to continue to operate its tiering framework as set out in its policy statement of 30 June 2022.
	Where the Bank has determined a firm to be a systemic third country CCP, the Act provides the Bank with the power to apply its domestic rulebook, in part or entirely, to these firms. These powers allow for the Bank to maintain the effect of the existing framework where certain CCPs headquartered outside the UK may be subject to UK rules if they are deemed systemically important.
	The Act also allows for HM Treasury to grant the Bank further powers to apply domestic rules to non-systemic overseas CCPs and CSDs, should it deem it necessary in the future.