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The Securities and Futures Commission (SFC) and the European Securities and Markets Authority (ESMA) have entered into a Memorandum of Understanding (MoU) on cooperation arrangements in connection with Hong Kong-established central counterparties (CCPs) which have applied for recognition by ESMA (Notes 1 & 2).
The establishment of cooperation arrangements fulfils a precondition under European Market Infrastructure Regulation (EMIR) for ESMA to recognise these CCPs as eligible to provide services to clearing members or trading venues established in the European Union (Note 3).
Notes:
1. The MoU is posted on the SFC website.
2. The CCPs established in Hong Kong which have applied for recognition by ESMA are:
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- Hong Kong Securities Clearing Company Limited;
- HKFE Clearing Corporation Limited;
- The SEHK Options Clearing House Limited; and
- OTC Clearing Hong Kong Limited.
3. EMIR refers to Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories.
EMIR provides for cooperation arrangements to be established between ESMA and non-European Union authorities whose legal and supervisory framework for CCPs have been deemed equivalent to EMIR by the European Commission.
