The European Association Of CCP Clearing Houses (EACH) Welcomes The European Commission Equivalence Decision In Clearing Services

Against the background of a hard Brexit and increasing risks to financial stability, the European Association of CCP Clearing Houses (EACH) welcomes the decision of the European Commission to agree on a temporary and conditional regime for equivalence and recognition for UK CCPs (1). This regime represents a step forward towards ensuring financial stability and avoiding amongst other the disorderly close out of positions of EU clearing members in UK CCPs guaranteeing the continuity of critical clearing services for EU clearing members in case the withdrawal of the UK from the EU occurs without an agreement (i.e. ‘no-deal’). This equivalence agreement brings increased legal certainty for the market to cope with a ‘no-deal’ scenario.

EACH now looks forward to ESMA providing temporary recognition of UK CCPs expeditiously in order to ensure the continuity of clearing services and a stable financial market in case of a ‘no-deal’ scenario. EACH also requests a reciprocal approach by UK authorities. We therefore welcome the steps already taken by UK authorities to enshrine into UK law (2) a temporary and conditional equivalence regime for EU CCPs and look forward to UK authorities providing temporary recognition of EU CCPs expeditiously.

For more information, please find attached the statement or visit our website www.eachccp.eu. See below legislative texts:

1)     https://ec.europa.eu/info/sites/info/files/c_2018_9139_fisma_9674_en_act.pdf

2)     https://www.legislation.gov.uk/uksi/2018/1184/pdfs/uksi_20181184_en.pdf