UK EMIR: clearing threshold for commodities

On 6 March 2026, the FCA published quarterly consultation paper 51 (CP 26/8) which, among other things, includes a proposal to increase the clearing threshold for the commodities (and other) asset class under UK EMIR to EUR 5 billion.

Currently, the threshold for the commodities (and other) asset class is EUR 3 billion under UK EMIR and EUR 4 billion under EU EMIR, in each case measured against all OTC derivatives (cleared and uncleared).

The clearing threshold regime under EU EMIR is about to change, which you can read more about in our article here. ESMA's final report on the new regime proposes a threshold of EUR 4 billion for commodity derivatives and emission allowances, measured only against OTC derivatives which are not cleared at an authorised or recognised CCP under EU EMIR (uncleared positions). Along with rising commodity prices, this has likely been a factor in the FCA's proposal in relation to UK EMIR.

The FCA stated the following in CP26/8 (emphasis added):

"In the absence of appropriate changes, we believe UK firms may be competitively disadvantaged relative to competitors in other jurisdictions where there are similar regimes but where the thresholds are calibrated differently, including the EU. This proposal is designed to mitigate this until a full review of the clearing regime in UK EMIR is conducted."

This proposal would be a transitional measure as the FCA considers broader changes to the clearing regime in the UK.

This part of the consultation is open until 13 April 2026.

If you would like to discuss this further, please do not hesitate to contact us.