The Bank of England welcomes the European Securities and Markets Authority’s (ESMA) recognition decisions with respect to central counterparties (CCPs) established in third countries. The decisions give the formal permission for UK CCPs to operate in the EU, continue to provide clearing services to their EU members, and EU banks to continue meet their obligations to UK CCPs.
This follows the publication on 21 September 2020 by the European Commission of a time-limited equivalence decision on the future UK legal, and supervisory framework for UK CCPs.
As part of the recognition process, the Bank of England and ESMA have agreed an updated Memoranda of Understanding regarding cooperation and information-sharing arrangements with respect to CCPs. The MoU takes effect from 1 January 2021.
