ESMA is ready to review UK CCPs and CSDs recognition applications for a No-Deal Brexit scenario
ESMA published a Public Statement on 19 December 2018 to clarify its plans for the recognition of Central Counterparties established in the United Kingdom (“UK CCPs”) as Third Country CCPs (“TC-CCPs”) under Regulation (EU) No 648/2012 (European Markets Infrastructure Regulation – EMIR) for a No-Deal Brexit scenario, where UK CCPs will become TC-CCPs as of 30 March 2019.
As previously communicated in its public statement of 23 November 2018, the ESMA Board of Supervisors supports continued access to UK CCPs, in order to limit the risk of disruption in central clearing and to avoid any negative impact on the financial stability of the EU. Therefore, ESMA aims to recognise UK CCPs in a timely manner, where the four recognition conditions under Article 25 of EMIR are met.
The ESMA Board of Supervisors also supports continued access to the UK Central Securities Depository (“CSD”) in order to allow the UK CSD to avoid any negative impact on the Irish securities market.