Friday, January 8, 2021 On December 31, 2020, the UK’s Financial Conduct Authority (FCA) published a statement on the use of temporary transitional power (TTP) to modify the UK’s derivatives trading obligation (DTO). The TTP will be implemented on December 31, 2020 at 11:00 p.m. UK time (the Statement). Recently, the United Kingdom implemented the G20 commitment to improve over-the-counter derivatives markets by onshoring the Markets in Financial Instruments Regulation (MiFIR) DTO under the EU Withdrawal Act. The UK DTO applies to the same classes of derivatives as the EU DTO. The United Kingdom has agreed to a trade and cooperation agreement and the associated joint declaration on financial services regulatory cooperation, which will consider mutual equivalence between the United Kingdom and European Union. The aim is to prevent disruption for market participants and reduce costs for investors.