Joint Associations Letter on CCP Recognition and Equivalence
November 12, 2019
On November 2, MFA and 13 other trade associations submitted a letter to the European Commission requesting the extension of the of the temporary equivalence for the UK’s regulatory framework for CCPs.
In the letter, the associations note that, while the European Commission previously granted temporary recognition to UK CCPs until March 2020, it would not provide a sufficient transition period if the UK exits from the EU on the currently scheduled January 31, 2020 date. Therefore, in the letter, the associations ask the European Commission to extend this temporary recognition until: (1) ESMA has completed its scheduled review of recognition decisions in existence as at entry into force of EMIR 2.2 (including the temporary recognition decisions in relation to UK CCPs); and (2) the UK CCPs have had the opportunity to terminate the clearing memberships of EU clearing members. The associations request that the European Commission confirm that it intends to extend the temporary recognition as soon as possible and in any event well in advance of the end of December 2019.