Published by Global Banking & Finance Review®
Posted on March 19, 2025
1 min readLast updated: January 24, 2026
Add as preferred source on GoogleThe PRA proposes reforms for recognised exchanges to enhance UK financial sector competitiveness and safety, focusing on overseas exchanges and asset eligibility.
LONDON (Reuters) - Britain's Prudential Regulation Authority on Wednesday proposed reforms to rules governing recognised exchanges, with a view to ensuring the continued safety and soundness of trading and clearing activities in the UK.
The PRA proposals mainly address the conditions under which an overseas exchange can be defined as a recognised exchange in the UK, and form part of the regulator's broader aims to boost the global competitiveness of Britain's financial sector by replicating some rules in place internationally and increasing asset eligibility.
It has also proposed that firms should undertake their own exchange and asset liquidity risk assessments, which could then be evaluated by the regulator via post-implementation thematic reviews.
The PRA has invited feedback on its proposals from firms that use, or accept, assets traded on non-UK exchanges for credit risk mitigation, liquidity risk, and market and counterparty credit risk purposes.
(Reporting by Muvija M and Sinead Cruise; Editing by Amanda Cooper)
The main topic is the PRA's proposed reforms for recognised exchanges to enhance the UK's financial sector competitiveness.
The proposals focus on conditions for overseas exchanges to be recognised in the UK and increasing asset eligibility.
Firms will need to conduct their own liquidity risk assessments, which may be reviewed by the PRA.
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