The UK FSMA 2000 (Markets in Financial Instruments) Amendment Regulations 2025 have been laid. The regulations extend the UK Financial Conduct Authority's (FCA) powers of direction to a new category of derivative, referred to as "applicable OTC commodity derivatives". This encompasses commodity derivatives traded over-the-counter that would otherwise fall outside scope of the FCA's powers because they were outside the definition of financial instrument, as specified in part 1 of schedule 2 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001. The new term "applicable OTC commodity derivative" will replace the existing term "over the counter contract" in regulation 27 of the Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017, which is being removed pursuant to paragraph 47 of schedule 2 to the Financial Services and Markets Act 2023. Accordingly, the amendment will come into force immediately after the 2023 Act changes are in force to ensure the changes are aligned.
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