On 6 March 2026, the Financial Conduct Authority (FCA) published Consultation Paper 26/8: Quarterly Consultation Paper No. 51 (CP26/8).
Background
In chapter 7 of CP26/8 the FCA set out proposals to increase the clearing threshold for commodity derivatives (commodity clearing threshold) under the UK version of the European Market Infrastructure Regulation (UK EMIR). The FCA is issuing these proposals in light of industry feedback that rising commodity prices, particularly metals, are pushing some commodity firms close to exceeding the commodity clearing threshold, even if they are not actively increasing the amount of business they conduct. However, the FCA adds that these proposals should be viewed as a transitional measure as the regulator continues to consider wider changes to the clearing regime as part of the review of Title II of UK EMIR at a later stage.
Proposals
Specifically, the FCA is proposing to recalibrate the commodity clearing threshold by increasing it from €3bn to €5bn (noting that references to EUR rather than GBP are retained). The threshold was originally set in 2016, but feedback has suggested that the inflation of commodity prices has effectively lowered the threshold, which has remained numerically unchanged since originally set. In particular, there has been significant commodity price inflation since the thresholds were originally set in 2016, with the S&P GSCI commodity index suggesting a price rise of over 90% during this period. Interestingly, the UK proposals diverge from (and are more liberal compared to) the EU EMIR corresponding threshold which is currently set at €4bn. The recalibration of the commodity clearing threshold would be made by amendments to Binding Technical Standard 2013/149 that support UK EMIR.
Next steps
The deadline for comments on the proposals is 13 April 2026.