On January 23, 2015, the UK’s Prudential Regulation Authority (“PRA”) published an updated version of its supervisory statement on the approach it will take under the CRR on credit risk treatments of exposures to third country counterparties, and for recognized exchanges. Initially, the supervisory statement set out the approach that was to be taken by the PRA on certain credit risk treatments under the CRR, where relevant third country equivalence determinations had not yet been made by the European Commission. It also set out the individual markets and exchanges that qualified as recognized exchanges under the CRR in the absence of a determination by the European Commission. Further to the binding decision of the European Commission that came into effect on January 1, 2015 (which published the names of third countries that apply supervisory and regulatory arrangements at least equivalent to those applied in the EU), the section in the supervisory statement dealing with this topic no longer applies and has therefore been deleted.

The updated supervisory statement is available at: http://www.bankofengland.co.uk/pra/Documents/publications/ss/2015/ss2013update.pdf; and the European Commission’s Decision is available at: http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32014D0908&from=EN.