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Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

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Article 26 Margin calculation with third-country counterparties

Where a counterparty is domiciled in a third country, counterparties may calculate margins on the basis of a netting set that includes the following types of contracts:

  1. (a)

    non-centrally cleared OTC derivatives subject to margin requirements under this Regulation;

  2. (b)

    contracts that meet both of the following conditions:

    1. (i)

      they are identified as non-centrally cleared OTC derivatives by the regulatory regime applicable to the counterparty domiciled in the third country;

    2. (ii)

      they are subject to margin rules in the regulatory regime applicable to the counterparty domiciled in the third country.