The UK Prudential Regulation Authority (PRA) has published policy statement PS6/26 on its approach to recognised exchanges and main indices in the context of the revocation and restatement of the UK Capital Requirements Regulation (UK CRR). The PRA previously consulted on the proposals in March 2025 (CP3/25). In the policy statement, the PRA confirms that it will proceed with introducing a new Recognised Exchanges Part in its Rulebook, specifying conditions under Article 4(1)(72)(c) of the UK CRR for the purposes of identifying recognised exchanges (REs) or assets traded on these exchanges. Assets traded on REs receive a preferential treatment within the bank prudential framework. Only minor edits to the original proposal have been made for clarity. Proposed consequential amendments to the definition of "higher risk equity exposure" in the PRA's near-final rules implementing Basel 3.1 will also be maintained.
The PRA also confirms that it will restate in the Glossary to the PRA Rulebook the list of main indices currently set out in implementing technical standards in UK Commission Implementing Regulation (EU) 2016/1646. In addition, the policy statement sets out the PRA's final policy to delete supervisory statement (SS20/13) on third country equivalence aspects of the credit risk provisions in the CRR and recognised exchanges. It also makes amendments to the Counterparty Credit Risk (CRR) Part of the PRA Rulebook and the Credit Risk Mitigation (CRR) Part of the PRA Rulebook which are consequential to the PRA's REs policy proposals and the proposal to restate the list of main indices into the PRA Rulebook.
The implementation date for the PRA's rules specifying conditions under Article 4(1)(72)(c) UK CRR and the revocation of SS20/13 will be 1 July. The implementation date for the PRA's rules specifying the definition of "higher risk equity exposure", the restating of the main indices list, and the consequential amendments to the Counterparty Credit Risk (CRR) and Credit Risk Mitigation (CRR) Parts will be 1 January 2027.
