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ARTICLE · 06 SEPTEMBER 2024

Capital Markets: Derivatives 2024: Trends & Developments

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The article discusses the impact of Labour's victory in the 2024 UK election on derivatives regulation, emphasizing continuity with existing regulatory initiatives while focusing on streamlining regulations post-Brexit to enhance competitiveness and drive targeted financial services reforms.

United KingdomFinance and Banking
Carolyn Jackson
Carolyn Jackson
Nathaniel Lalone
Nathaniel Lalone
Christopher Collins
Christopher Collins
Ciara McBrien
Ciara McBrien
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Law and Practice

1. General

 1.1 Overview of Derivatives Markets

The UK's regulatory framework over the derivatives markets and products is currently made up of a mixture of UK domestic and EU-derived rules and regulations. The key pieces of legislation and regulations that impact the UK derivatives markets include the following:

  • Financial Services and Markets Act 2000 (FSMA)– This is the cornerstone of UK financial regulation. The "general prohibition" therein states that a person carrying out specific activities in relation to specified investments, including derivatives, must be authorised to do so or have an exemption. The FSMA also places restrictions on financial promotions (ie, invitations or inducements to engage in investment activity).

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