.jpg)
On December 16, 2016, the European Commission determined that the United Arab Emirates has an equivalent regulatory regime for central counterparties (CCPs) to the European Union (EU). The decision confirms that non-EU CCPs in the UAE meets the EU’s regulatory standards. This decision will contribute to market certainty and cross border activity, thereby avoiding fragmentation of markets.
European Commission Vice-President Valdis Dombrovskis, responsible for Financial Stability, Financial Services and Capital Markets Union, said: "The EU cooperates closely with third countries to protect financial stability while supporting firms to operate across borders in global markets. We carry out a rigorous, case by case assessment of each country, and I am pleased to announce today equivalence decisions for ten jurisdictions. These decisions will contribute to market certainty and avoid fragmentation.”
Gaurang Desai, CEO of the DGCX said ‘This is great news for all Exchanges and Clearing Corporations in the UAE and vindicates the work done towards obtaining equivalence and harmonization of regulatory oversight. The UAE has now been recognized by the European Commission as an equivalent regulatory regime which is extremely positive news for the future of clearing and settlement business in the region’
