Pursuant to External Communication 022/2015-DP of December 02, 2015, we hereby inform you that today the European Commission published Commission Implementing Decision (EU) 2016/2276 of 15 December 2016 on the equivalence of the regulatory framework for central counterparties in Brazil in accordance with Regulation (EU) No 648/2012 of the European Parliament and of the Council (Equivalence Decision).
The Equivalence Decision considered the Brazilian regulatory framework applicable to clearinghouses that act as central counterparties (CCP) pursuant to the provisions of Law 10.214/01 and of its non-statutory regulations, equivalent to that contained in Regulation (EU) No 648/2012 (European Market Infrastructure Regulation - EMIR) pursuant to the provisions of Article 25(6) of EMIR.
The Equivalence Decision is an essential stage and a condition precedent for recognition of the clearinghouses managed by BM&FBOVESPA (BM&FBOVESPA Clearinghouses), by the European Securities and Markets Authority (ESMA), as having the status of third-country central counterparty (TC CCP) in relation to the European Union, pursuant to the provisions of the request submitted to ESMA on September 11, 2013.
Once granted, this recognition will entail the definitive classification of the BM&FBOVESPA Clearinghouses as qualified central counterparties (QCCP) for the purposes of the capital requirements applicable to European financial institutions required in Regulation (EU) 575/2013 of the European Parliament and of the Council on Prudential Requirements for Credit Institutions and Investment Firms and Amending Regulation.
BM&FBOVESPA will continue to work with ESMA, through its European lawyers, seeking to conclude the qualification process of the BM&FBOVESPA Clearinghouses.
The full text of the Equivalence Decision is available at eur-lex.europa.eu.
