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MGEX, a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), announces recognition as a third-country central counterparty (CCP) under the European Markets Infrastructure Regulation (EMIR).
This week the European Securities and Markets Authority (ESMA) formally recognized MGEX as a third-country CCP under Chapter 4 of Title III of Regulation (EU) No 648/2012.
“This is a major milestone for MGEX, and MGEX thanks ESMA along with the Commodity Futures Trading Commission for their support and assistance through the application process,” said Mark G. Bagan, President & CEO, MGEX. “MGEX is very pleased to be among the first three U.S. entities recognized by ESMA, particularly given MGEX’s size in relation to the other CCPs. Congratulations to the MGEX Clearing House on this significant accomplishment.”
Under EU laws, EU-based bank affiliated clearing members may receive favorable capital treatment under Basel III for their exposures to CCPs that are considered qualifying CCPs (“QCCPs”). One of the conditions necessary for a non-EU CCP to be treated as a QCCP under European law is that it receive authorization or recognition under EMIR.
MGEX joins just two other U.S. entities on the list of twenty-one other worldwide ESMA recognized CCPs.
