The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has signed a Memorandum of Understanding (MoU) with the British Columbia Securities Commission and updated its list of recognised third-country central counterparties (TC CCPs) under the European Markets Infrastructure Regulation (EMIR).
On 8 August 2024, ESMA recognised CDS Clearing and Depositary Services Inc. (CDSC) as a Tier 1 CCP under Article 25 of EMIR.
The recognition of CDSC as a third country CCP follows the adoption on 13 November 2015 of an equivalence decision regarding the regulatory framework for central counterparties established in certain provinces of Canada, including in British Columbia, and was made possible by the signature of a Memorandum of Understanding (MoU) between ESMA and the British Columbia Securities Commission on 18 July 2024.
The MoU establishes cooperation arrangements, including the exchange of information, regarding CCPs which are established in Canada and authorised or recognised by the British Columbia Securities Commission, and which have applied for EU recognition under EMIR. The new agreement complements ESMA’s MoU with the Ontario Securities Committee and the Autorité des Marchés Financiers of Québec.
With this MoU, ESMA has concluded 26 cooperation arrangements under EMIR with relevant non-EU supervisory authorities from 21 countries across all continents, including:
- Africa: South Africa
- Asia: China, Hong Kong, Indonesia, Israel, Japan, Malaysia, Republic of Korea, Singapore, Taiwan, United Arab Emirates
- Europe: Switzerland, United Kingdom
- North America: Canada, Mexico, United States of America
- South America: Brazil, Chile, Colombia
- Oceania: Australia, New Zealand
EMIR provides for cooperation arrangements between ESMA and the relevant non-EU authorities whose legal and supervisory framework for CCPs has been deemed equivalent to EMIR by the European Commission.
